The cost of living is soaring and personal debt levels are mounting on a regular basis. Credit card interest rates are now higher than ever, yet 35% of Brits turn to their credit card to help fund their day-day living expenses.
If youíre coming to the end of your balance transfer, itís advisable to shop around for the next best offer . There are many options on the market at the moment which are currently offering tempting 0% balance transfer deals, however you may need to be on the same creditor to benefit.
New research has found that over 18 million Brits get stressed out over money troubles. To avoid the headache, here are some useful tips on the current balance transfer deals;
1. Choose the right type of Card
The right type of balance transfer card depends on many factors. It is important to consider how much debt you have and how quickly you wish to pay it off. If you feel that you have a large amount of debt which could take longer than a year to pay off, it might be worth looking at balance transfer cards with particularly lengthy 0% deals.
If you only have a small amount of debt that could be paid off sooner, then you might want a balance transfer card with a limited time frame and lower fees. For example, Northern Bank offer a card with a 0% balance transfer or 5 months with no fees. However, it should be noted that this card is restricted to Northern Ireland residents.
2. Transfer Fees
Most 0% balance transfer cards allow you to transfer debt from one card to another; however a minority will allow you to transfer part of your credit limit straight to your current account as cash or via a money transfer.
The Virgin Credit Card does this, allowing you to pay off expensive loans or overdrafts in one period and still enjoy the 0% interest rate. Look carefully though when signing up as there is usually a fee with a balance transfer of this kind.
Virgin Money also increased the 0% interest period from 16 to 18 months for new customers on their balance transfer credit card. They are offering a fee of 2.89% for the transfer, 0% on card purchases for the first 3 months and an AP representative variable of 16.8%. The Barclaycard Platinum Card, which offers 24 months 0% balance transfer, has a 2.8% fee.
3. Opt For Long 0% Balance Transfers
Barclaycard have recently launched their longest ever 0% balance transfer deal which lasts for two years. The Barclaycard Platinum Card is the longest ever available to UK consumers, this could be beneficial for anyone who has mounting credit or store card debt, ultimately saving you thousands of pounds in the long run.
There is also the Barclaycard Platinum which gives 0% for 19 months. This card has a lower fee of 2.4% meaning that if you can repay quicker, itís cheaper than the 24 month card.