What are UK 0% balance transfer credit cards?

November 7th, 2010 | by admin |

UK 0% balance transfer credit cards are very popular because they give us a way to save money simply by transferring our outstanding credit card balances to a new provider that has a 0% interest offer, well at least for a period of time anyway. If you consider the current economic situation, it is somewhat shocking that the amount of people who have large credit card balances rises year on year and this tendency shows no sign of slowing down in the future. Many of these people are paying high interest fees for the privilege of having this debt so it is obvious that 0% balance transfer cards are a popular option.

If you know the statistics often quoted by the media and political personalities, the APR of a UK credit card is about 16% and the average debt of a British credit card holder is about £3000. So credit card companies require new customers to make money, and to attract new customers from their competitors, they offer 0% interest balance transfer offers. These offers generally span a period of time, usually between 6 to 18 months and have no interest on balances that are transferred to the new card, and may even cover purchases made during the same period.

The removal of the interest paying element is advantageous for the UK card holder as monthly interest is quite a large part of the monthly payment. It saves to the card holder a significant sum of money for the period of agreement.

0% balance transfer credit cards are a useful way to reduce your monthly expenses for a period of time, but it is also advisable to maintain the same level of repayments that were made before the transfer thus reduce your debt faster. Always check the terms of the card agreement, the period of the introductory rate, and the higher rate of interest introduced after the offer period ends plus the cost for the transfer process itself.

Financial Solutions