Card debt to continue this year
March 3, 2011
Over the course of this year many people will continue to experience the misery of credit card debt hanging over them according to a study carried out by the comparison site gocompare.com. Many people are struggling with credit card debt, having become more reliant on these cards over the past few years because of the global financial crisis and the recession.
Officials have said that many people that will be carrying credit card debt over the course of this year will still be paying off the debt that they accrued over the Christmas period in 2010. It is thought that around 22 percent of credit card holders will be carrying debt over the course of this year, and 7 percent will carry debt accrued last Christmas past June of this year.
The level of credit card debt in the country now stands at around £61 billion, with many people finding it difficult to repay high levels of credit card debt. There are also 10 percent of credit card users that have never changed their credit card provider according to research. Separate reports have shown that around 10 percent of Brits are in the red with their overdraft, and this is especially true of those aged between twenty and twenty nine.
For those that are struggling with their credit card debt it is advisable to switch the debt to a low interest or interest free credit card. This can help to reduce the amount of interest paid on the debt and increase the speed with which it is repaid.
Tags: high interest rate, com, comparison site gocompare.com, level, way, free credit cardOne official said: “Transferring a balance from a card with a high interest rate could be an excellent way to kick start getting rid of your credit card debt for good.”
Brits more prepared when it comes to credit cards
November 12, 2010
It has been revealed in a recent report that there has been an increase in the number of people that have been searching for a 0 percent balance transfer deal. Credit reference agency Experian claims that in October the number of people searching on 0 percent balance transfer credit cards increased by more than 35 percent compared to the same month last year. Officials claims that this means that consumers are better prepared this year, and are not waiting around for the bills from Christmas spending to start rolling in when January comes around.
Experts have said that the fact that more people are searching for interest free balance transfer credit cards can be viewed in two ways, one good and one bad. On the upside it means that consumers are no longer willing to put up with high interest credit card debt, and are willing to prepare themselves for the expense of the Christmas period and do their best to avoid having to pay unnecessary interest on their borrowing.
However, on the other hand officials say that it could mean that consumers are simply planning to spend, spend, spend over the festive season regardless of whether they can afford it, and are hoping that by putting all of their credit card debt onto an interest free balance transfer card they can reduce the stress of borrowing money that they cannot really afford.
Those that are searching for a 0 percent balance transfer credit card will find a number of deals on the market, and will be able to find the most suitable card by comparing the various deals available. Looking for a longer interest free period will enable consumers to spread the transferred balance out more and reduce their payments.
Tags: interest free balance transfer credit cards, debt, festive season, balance transfer, rolling, high interestBalance Transfer Credit Card Offers – Join the Wave
October 26, 2010
Balance Transfer Credit Card Offers – Join the Wave
Balance transfer credit car offers have been a popular means of literally transferring a balance from one credit card to the next. The primary reason that someone would enact a balance transfer is so that he or she could obtain a lower interest rate than his or her current credit card offers. Balance transfers are relatively easy moves, provided that you find a balance transfer credit card that can accept you into the lucrative balance transfer program at a lower rate than your current company. There are a few essential items that you should know about balance transfers before you begin the process and “join the wave”.
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What Is a Balance Transfer?
A balance transfer is a simple strategy that many people use in order to obtain the most appealing interest rate. Quite literally, a credit card balance transfer requires that you take the balance on your current credit card and roll it into a balance transfer credit card program with a competing credit card company. It is important to note that while many credit card companies offer appealing balance transfer credit cards, you should first ensure that you are eligible to perform a balance transfer and lock in at a low rate before you initiate the procedure. If you have a low credit score, you may not find a credit card company that will offer a balance transfer credit card to you until your score increases.
How Balance Transfers Effect Your Credit Score
Whether you think it’s fair or not, if you frequently switch from one balance transfer credit card program to the next, you will not proceed unnoticed. Credit card companies will eventually catch on to your migrant tendencies and thus, decrease your credit score and increase the available rate for you. Therefore, if you are a chain user of balance transfer credit cards, you run the risk of negatively effecting your credit score in the long-run. Credit card companies will be weary of an individual that has a history of performing balance transfers, and therefore, may lock you into a higher interest rate to ensure that they do not lose money by taking you on as a client.
When Not to Initiate a Balance Transfer
If you are lucky enough to be locked in with a credit card company at a good interest rate, then it is a bad idea to engage in a balance transfer. Like any other balance transfer, a credit card balance transfer will most likely clear your credit card account with your original company and, thus, lock you into a relationship with a new credit card company. That new company may raise your rates to a level that is higher than your previous company after the initial low interest rate trial period. Therefore, before you initiate a balance transfer, it is important that you read the fine print on the company offering the balance transfer credit cards.
It can feel like finding a pot of gold when you find a balance transfer credit card that offers a low interest rate and other incentives to encourage you to make the switch. However, as with anytime you engage in a balance transfer, it is essential that you do ample research into exactly what the new credit card provides. Chances are good that any company that offers balance transfer credit cards is using the tried-and-true credit card balance transfer strategy to get a quick influx of clients. Educate yourself so that you can make an informed decision about your own balance transfer possibilities.
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I have good credit and want to transfer some of the balances off my traditional cards to some cards that offer 0% interest for at least a year on balance transfers. Thanks in advance for your help.
Best answer:
Answer by dm_dragons
Almost all credit cards will offer 0% from time to time. Just search online and many offer some filters to get the exact kind of card you are looking for.
I’d recommend starting with Bank of America. I recently got a 0% Mastercard that lasted for 15 months! That’s sort of rare to get a 0% for that long, but if your credit is that good, it’s possible.
What do you think? Answer below! transfer fee. Help!?
I read in a magazine that there is credit card offers that do offer 0% Balance Transfers AND $ 0 Balance Transfer fee. The credit offers I’ve seen offer 0% BT, but have a fee. Please help!
Best answer:
Answer by Doctor J
Hi Susan. The credit markets have changed dramatically. I haven’t seen this type of offer for a while now.
Know better? Leave your own answer in the comments!
Some of the latest news on balance transfers..
Related 0 Balance Transfers Articles
Tags: good cards, mastercard, USD, current company, roll it, low credit scoreTaking Advantage Of 0% Balance Transfer Credit Card Offers
October 26, 2010
Taking Advantage Of 0% Balance Transfer Credit Card Offers
If currently carry a balance on your credit cards, chances are you are spending hundreds, if not thousands of dollars a year on interest. How much money you waste every year will vary based on how much credit card debt you have, but, according to studies, the average American household carries approximately 00 in credit card debt. At a modest interest rate of 12%, this would translate into 0 a year in interest expenses. If the interest rate is higher, say 16%, carrying a balance on your credit card could be costing you over 00 a year in interest!
0% APR balance transfers provide an excellent solution to consumers who carry debt. With one of these offers, you can enjoy an entire year without interest to help you pay down your current debt and prevent compounding interest from moving your credit card balances into the stratosphere. Here we will discuss the benefits of 0% balance transfers.
The best type of 0% offers are for no fee balance transfers. Buried in the fine print of nearly all credit card applications is the balance transfer fee. This nuisance fee applies to 3% of all balances transferred. Over the past year, balance transfer fees have risen quite a bit. Generally, the maximum dollar amount does not exceed – per transaction. However, a few sneaky companies have put no limit on fees.
Fortunately, with a no fee balance transfer, you can avoid these fees. In some instances, the fee to transfer a balance can add up to 0 or 0 on an 00 balance transfer, depending on how many different cards you need to transfer balances from.
Because there are a limited number of no fee balance transfer credit cards on the market, the next best option for balance transfers is to find a credit card that offers a 0% APR on purchases and balance transfers for 1 year. While the number of these offers is becoming somewhat limited, finding a credit card that offers 0 APR balance transfers as well as a 0 APR on purchases is easier than finding a no fee balance transfer credit card.
To select the best balance transfer credit card, begin by looking at the dollar cap on fees for each transaction. This can be especially helpful if you are simply transferring a balance from one credit card. For example, if you have an 00 balance on a single card, your maximum balance transfer fee will be to , or around 1% of the transaction.
The effect of balance transfer fees grows when you have many small balances on multiple cards, as each card you transfer will be counted as a single transaction with a 3% fee. For example, if you have one credit card with a 00 balance, two credit cards with a 00 balance and a third credit card with a 00 balance, your total balance transfer fee will be 5 or 2.4% of the balance.
Even though paying a balance transfer fee isn’t the most pleasant of experiences, the savings you can reap with 0 balance transfers more than offsets this annoying fee. For example, if you are transferring 00 from a single credit card with a 15% interest rate, your total interest savings, including fees, will be close to 00. Now, even if you have to transfer balances from multiple credit cards, and thus pay multiple fees, you will still be saving over 00 on interest. Plus, this doesn’t even take into account the amount of money you will save with your 0% interest rate on purchases.
Aside from 0 balance transfers, there is one last type of balance transfer offer. This is the fixed APR balance transfer. For some people, it may be worthwhile to use 0 balance transfers for a number of years, transferring your debt from one company to another until the balance is repaid. However, there is always the chance you may not get approved for a 0% rate in the future. If you would prefer to avoid this risk, a fixed APR balance transfer may be right for you.
With a fixed APR balance transfer, you pay a set rate until your balance is repaid in full. For example, a typical fixed APR balance transfer offer will provide a 5.99% interest rate for life. A few credit cards offer no fee fixed APR balance transfers, but the majority do not. Thus, if you opt for a fixed APR balance transfer over a 0 APR balance transfer, your interest rate in the first year will be closer to 8.99% with fees. However, if you know it will take you many years to repay your balance, the long term rate of 5.99% can provide great savings and the security of knowing your interest rate won’t be going through the roof anytime soon.
Overall, the best option for consumers looking to lower their credit card interest rates is a 0 APR no fee balance transfer. However, since these offers are difficult to come by, the next best option is to find a credit card that offers 0 APR balance transfers and a 0 APR on purchases as well. Lastly, consumers looking to pay down their debt over the long term may want to consider a fixed APR balance transfer. However, as with any type of credit card, always look for one with low or no balance transfer fees.
This article was written by Jay Mayweather for Smartcreditchoices.com,, who offers 0% APR balance transfers and no fee balance transfers and compare current 0% APR credit card offers from every major card issuer. Article reproductions must include a link pointing to http://www.smartcreditchoices.com/.
I transferred a balance from Capital One to Citi because my interested on capital one was recently increased. The only issue is I still use that card and pay it all off every month since the interest on that card is 23.99% How can I pay the balance transfer off at the same time while not paying interest on the other charges that I put on that credit card?
Best answer:
Answer by Avatouir
http://www.moneysavingexpert.com/site/the-money-man-gmtv
I use this site whenever I need to know anything. It’s Martin Lewis’ official website. You know, the guy that writes for one of the major tabloids(either the Sun or the Star I can’t remember) and has appeared on Tv several times with tips on consumer rights, how to deal with unfair bank charges etc. I find it very useful and you’ll find a far better answer than I can give
What do you think? Answer below!
I am in a slight amount of debt ( 4,000 on two cards)
I cant deal anymore with 23% apr!! i havent even spent 8,000, i just am paying all these finance and interest charges…any ideas what I should do? Which credit card is best to transfer this balance so i can pay it off with 0% apr in 1 year?
Best answer:
Answer by kelco
Virgin credit card are 0% for 18 months
Know better? Leave your own answer in the comments!
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Tags: limited number, consumers, Major, no fee balance transfer credit cards, fee balance transfersConsumers Could Benefit From Fee Free Card Transfers
October 13, 2009
At this time of the year, when many people are still battling to repay the credit card debts that they built up over the Christmas and New Year periods, many cardholders decide to look for suitable alternatives to try and cut the amount of interest that they are paying as well as to try and clear their credit card debt quickly. For those that have outstanding balances on high interest credit card, and who are unable to clear the balance in one go, interest payments can end up being very high. Read more
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Tags: Credit Cards, 0% introductory offer, Cards, changeover, abbey, creditLenders Raising Costs
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Over the last three months the cost of credit card borrowing has gone up considerably with new figures showing that more than 10% of credit card providers are raising their rates. Sixteen credit card providers have put up the interest rates on purchases since August and all this has happened not taking into account the drops of Bank of England base rate. All this information has been put togeather by financial information group Moneyfacts. Read more
Tags: bank of england, moneyfacts, 0% balance transfer, Credit Cards, purchasesDifferent Types of Credit Cards
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If you are looking to take out a credit card you will find that the wide choice of credit cards on the market these days makes it easier for you to find a card that is perfectly suited to your needs and circumstances. If you have a good credit history and rating you will usually find that you can choose from a wide range of credit cards, although the choices for those with bad credit will be far more limited. It is important to make sure that you choose the right card for your needs and circumstances, as otherwise you could end up paying over the odds or could miss out on some valuable benefits. Below is a summary of some of the popular credit card types available these days: Read more
Tags: Credit Cards, 0%, balance transfer, 0 purchase, reward credit cardsSearching for a Suitable Credit Card
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The world of credit cards has become something of a minefield in many ways over recent years, and this is because there are so many different credit card types available from such a wide range of lenders. For those with good credit the choice of credit cards is very good, and it is possible to find credit cards to suit most needs and circumstances. Credit cards have become increasingly popular over recent years, with many enjoying the convenience, ease, flexibility, and even increased security that they offer. Read more
Tags: Payment card, Credit Cards, balance transfer, credit card, 0 purchases, cashbackShould You Switch Your Credit Card?
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With the current financial climate in the state that it is in many people may be confused as to whether they would benefit from switching their credit cards or not. Many industry professionals have stated that the cost of borrowing on many credit cards has rocketed over recent years, and this means that many people may now be paying a fortune for their credit card borrowing. In cases such as these it may be advisable to switch to another card that offers a more competitive rate. However, there is also the fact that tighter credit conditions could make it harder for consumers to get another credit card, and this could result in rejection, which in turn could lead to damaged credit. Read more
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