The New Year is upon us and alongside the bags of goodwill, sacks of presents and boxes of leftover mince pies that remain, for many people there is also a sizeable amount of debt that dauntingly looms over as they trudge back to work their next pay check all too far away.
Yet, alleviating your credit burdens can be made far less troublesome with the acquirement of one of the many balance transfer cards that come with 0% interest for a period of time that suits you. Saving you tons of money in interest payments, these cards are a lifesaver for the struggling borrower and can be the route around your over-extravagant ñ but totally worth it ñ purchases made for your familyís pleasure last Christmas.
As always it is imperative you stick to a regimented repayment plan, and strive to make as few to no purchases as possible with your card, focussing on using it for its intended purpose of absolving yourself of debt rather than accruing greater amounts due to your weakness for handbags and glad rags. If you fail to make monthly repayments on time, or fail to pay off the debt transferred before the end of the term, the higher Annual Percentage Rate will kick in, typically standing at around 18.9%.
The length of term can be up to 35 months, in most cases an ample amount of time to exculpate your accrued debt, and if not then you can transfer the debt again to another card a month or more before your promotional period ends.
In order to get hold of one of the numerous 0% interest balance transfer cards flooding the market you must have a good credit rating, be in employment and be willing to pay a handling fee of around 3% of the debt transferred.
Here are some of the top balance transfer cards in terms of length currently on the marketÖ
Barclaycard 35-month 0% Platinum Visa ñ This card comes with the longest 0% promotional period on the market and a 2.49% handling fee, which means transferring £1,000 worth of debt would cost you £24.90.
Lloyds Bank 34-month Platinum BT MasterCard ñ Coming in a close second to Barclaycard in regards to the length of term, Lloydsí top balance transfer card comes with a higher handling fee of 3%, meaning £1,000 of debt transferred would set you back £30.
Sainsburyís Nectar Balance Transfer MasterCard ñ Interest free on balance transfers for 33 months, the supermarket giantís balance transfer offering comes attached with a 2.89% handling fee, meaning £1,000 of debt transferred would cost you £28.90. However, borrowers are entitled to large amounts of nectar points through spending with this card, so this could be the product for any devoted Sainsburyís shoppers.
If time is not of the essence, there are plenty of shorter deals which come with no fee, saving you even more money, including Santanderís 123 balance transfer card comes with a 23 month 0% interest free promotional period, and for an annual fee of £24 card holders are entitled to 3% cashback on petrol amongst several other perks.
All deals come with a higher APR of 18.9% which is triggered in the event of missed monthly repayments or simply the end of the promotional period. However, this number is dependent on your credit rating, with those with a chequered credit history being charged a higher amount in the event of defaulting as a further incentive for them to stay on the straight and narrow.
However, if handled with an apt degree of judiciousness, these balance transfer cards are the sure-fire way to managing your debt easily and saving bags of cash.
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