Credit card debt is an issue that afflicts a large number of people, and it’s always worth keeping an eye out for better offers.
By moving to new lenders, you could save compared to the interest you would have been paying.
Banks have been improving their offers for customers shifting debts to a new card over the past 12 months, according to new figures.
TotallyMoney research says that most big banks now offer more than 30 months at 0% interest for joining customers.
The credit reporting site’s research, carried out by Moneycomms, found that average balance transfer lengths have improved by almost five months.
Natwest currently offers 34 months at 0% interest on its top deal.
Barclaycard, HSBC and Tesco Bank all offer 33-month 0% interest cards as well.
TotallyMoney says that a customer shifting an average interest-bearing balance – £3,002 – along with a typical 3.5% fee to the leading Natwest offer could save £1,568 compared to what they may have paid.
It adds that almost one in two credit card customers are paying interest on their balance each month and could stand to benefit from a transfer.
What is a balance transfer credit card?
For a small fee, around 3-4%, balance transfer credit cards let you shift credit card debt and stop paying interest for a set amount of time – which can allow outstanding debts to be paid off.
Longer balance transfer lengths mean more time without paying interest and bigger savings compared to other deals.
However, you’ll need to make the minimum repayment set each month by the lender.
If you miss a payment, you could be required to pay a penalty fee and may lose the 0% rate.
Also, once the interest-free period ends, a higher rate of interest may be applied.
