Market leader Barclaycard have released their latest 0% balance transfer card that enables users to enjoy an interest free period of 31 months, at an attractive rate of 2.99%.
The 31 month Platinum Visa Barclaycard was unveiled this week and compellingly gives a £20 balance transfer fee refund to any user who transfers more than £2,000 worth of debt onto the card, and does so within 60 days of initially opening the account.
The refund is paid out to the userís credit card on the date they receive their third statement, whilst the original rate of 3.5% is reduced to 2.99% within two working days from when the user transfers their debt to the new account, providing again that it is within 60 days of opening the account.
The £20 refund means that the cost of transferring £2,000 worth of debt onto the card for a new customer would be just £39.80, making it one of the most competitive deals ever released on the balance transfer card market.
Users are also entitled to an initial 6 month introductory period of 0% on purchases, after which they are moved to the standard rate of 18.9% APR, and the transferred balance cannot exceed 90% of the cardís limit, which is determined by the bank upon application.
Barclaycard have supplemented their latest offering with an equivocal new release that grants users a 30 month, 0% interest period on all transferred balances.
The 30 month Platinum Visa Barclaycard comes with the same initial transfer rate as its 31 month counterpart, though this is reduced to a slightly lower 2.89% within 2 days of a balance being transferred.
The card also offers the innovative £20 refund on all transferred balances over £2,000, meaning that the cost of transferring £2,000 worth of debt on this card would be just £37.80, making it the cheapest deal on the market at present.
Users will also enjoy a 6 month interest free period on purchases, after which they are moved to a higher rate of 18.9%, though it is recommended that the card is not used for this purpose as it functions far better in a consolidation capacity.
Considering the exceedingly higher levels of personal household debt in the country at present, and with interest rates set to rise sooner rather than later, it can be argued that comparing round the market and looking for the best 0%
transfer card is an excellent route to keeping the costs of debt down.
It has been argued by critics of the card type that they simply perpetuate financial problems by encouraging non-
payment but this comes from an abuse of its facilities rather than as a necessary side effect.
If used properly, a balance transfer card is an excellent mechanism to prevent debts spiralling up from late and interest charges that an individual may be experiencing due to short term financial difficulties.
The low cost of balance transfer cards today mean that a one off payment of around £38 could enable a user to consolidate £2,000 worth of their debt for almost two and half years, which is ample time for them to turn their financial fortunes around and pay back their debt in a structured and convenient manner, the ideal situation for someone with rapidly mounting up levels of debt.
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