0% Balance Transfer Deals Top of the Credit Card Charts

UK credit card customers are being tempted with 0% balance transfer deals as almost 70% of balance transfer credit cards are offering special deals in the hope that consumers will transfer their festive season debt.

Online comparison site, MoneyExpert, have released figures that show that 149 UK credit cards that offer 0% balance transfers offer introductory deals that run for 9.5 months.

Some of the UK’s major credit card companies are offering deals of up to 15 months. Capital One’s credit card currently has an balance transfer deal that lasts for 15 months with Barclaycard and Virgin Money offering 0% balance transfer offers of 13 months.

These deals represent great value for those consumers who either have modest amounts of card debt that could be cleared within these introductory periods or are financially disciplined and unlikely to run up further debt.

MoneyExpert, however, advise those who have debts they are unlikely to clear within these offer periods, to opt for credit cards that offer low interest rates for the lifetime of the balance. Consumers have to bear in mind that once a 0% balance transfer offer expires any existing debt on the card is then subject to interest rates of 15% and above. Low lifetime rate cards offer interest rates of 3.9% - 5.94% offer consumers who have large credit card balances better value for money, as they won’t cripple them with interest.

Sean Gardner from MoneyExpert said: “ Everyone who has debt on their card should consider changing credit card provider if it is possible to reduce their interest bill.

“ And of course if you are transferring debt you should also resolve to cut out spending on your card as well. Zero per cent balance transfer deals are excellent way to start the process. But remember if you do not clear the debt in the introductory period you will start paying interest and often that will be relatively steep rate.”

Alisdair Milton
9th January 2007

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