In particular, Barclaycards new 32 month Extended Platinum Balance Transfer card and 31 month Platinum Balance transfer cards come with low fees of just 2.89% and might be well suited to people suffering severely at present, whilst Halifax and MBNA have 31 month and 30 month deals at present which might also be worth considering.
Barclaycard has released a 6-month 0% balance transfer card which comes with a record low transfer fee of 0.25%.
This novel deal has outstripped the previous best-value balance transfer card offered by Sainsburyís last month to a certain extent; the transfer fee is down by a substantial 0.25% from 0.5%. However, the ability to make 0% purchases with the card during the promotional period offered by Sainsburyís is not included in Barclaycard's new scheme.
The aforementioned transfer rate means that a card holder would have to pay a mere £2.50 to transfer a balance of £1000 to the Barclaycard Platinum Low Balance Transfer Fee Credit Card, easing short term monetary problems.
Renowned innovators in the balance transfer subdivision, Barclaycard released a market-best, long term balance transfer card in April allowing customers to place their debt into an account with zero interest for three years.
However, following criticism from various financial experts which noted that the protracted length of this card is not necessary for many customers who would be better served locating a shorter deal with a smaller transfer fee to address their financial needs, Barclaycard have responded accordingly by scaling down both the time and transfer fee (%).
This alternate balance transfer card is indicative of Barclaycard going down a different route of promotion to attract a more varied clientele.
However, when the promotional 6-month 0% interest period concludes, card-holders are subjected to a far greater 19.99% APR. This stipulation clarifies that the new card is almost exclusively targeted at individuals enduring short term financial turmoil who believe they can clear their debt within the allotted 6 month period. Others, with persisting pecuniary problems should seek alternative deals with longer 0% deals and higher transfer fees.
To retain the 0% rate, card holders must ensure that minimum payments are paid on time, whether that be on a weekly, monthly or bi-weekly basis and they stay within their credit limit. It is advised that once entering onto any balance transfer card scheme, you should set up a direct debit with Barclaycard so that payments are made on time and risk of losing oneís 0% deal is minimised.
The reduced transfer rate is reflected in the duration of the promotional period, which seeks to deter card holders from lagging on balance clearing payments, due to the sharp, hefty increase in rate following the end of 6 months.
Although the effective balance transfer fee you will pay is 0.25% of the balance transfer, the initial balance transfer fee accredited to your statement will be 1%. Barclaycard will then use a credit to reduce the fee charged to 0.25%. This credit will be utilised within 2 working days from the inaugural processing of your balance transfer.
Furthermore, the offer is only available to new customers applying through Barclaycard's online site. See www.barclaycard.co.uk.
Other Cards to consider
Although Barclaycardís new balance transfer card offers the lowest transfer fee available, there are many other providers which are more than able to satiate peopleís long term and short term financial needs.
Sainsburyís ñ 0.5% transfer fee; 12 month 0% interest period.
Tesco Bank ñ 0.65% transfer fee; 12 month 0% interest period
For people who are seeking longer term deals:
Bank of Scotland/Lloyds ñ 0.7% transfer fee; 15 month 0% interest period
Both deals include half a year of 0% interest on purchases as well. Both offer initial rates of 3% but these are later reduced to 0.7% providing card holders transfer their balance to accounts within 90 days of signing up.
And for those in severe financial hardship at present who are either unemployed or do not see a steep pick up in their wages in the near future there are long term options on offer from Barclaycard and Halifax which are available at present.
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