0% Balance Transfers
In the past having credit card balances on high interest cards meant that you would most likely pay a small fortune in interest unless you cleared the balance very quickly.
However, these days you may be able to transfer the balanced from your high interest credit cards onto a 0% balance transfer credit card, which can save you a fortune in interest payments.
The 0% balance transfer credit card is available from many card providers, and in order to get one of these cards you will need to meet the lender’s eligibility requirements, which usually includes having a good credit rating.
If approved you can then transfer the balances from your higher interest cards subject to the credit limit on your new card.
Once your balances have been transferred you will enjoy a specified period of interest free credit within which to clear your balance without being hit with interest payments.
If you still have an outstanding balance at the end of the 0% period this will be charged at the lender’s standard variable interest rate.
Most 0% balance transfer credit cards charge a transfer free of 2-3% of the total amount being transferred onto the card.
The interest free periods and the transfer fees can vary from one provider to another so you should make sure that you compare different cards to find the most suitable and competitive deal.