Are you also planning a credit-card switchover? Well, most people are. Figures from the study conducted by uSwitch showed that the transfer of debt from card to card had substantially increased by 22% to reach £1,400 in the past six months.
uSwitch has, however, asked consumers to be more aware and cautious while making such transfers otherwise they might end up paying even higher amounts. Many consumers were found to ignore and sometimes, even forget that the interest free periods in zero percent deals were only short term features that would lapse after the period ended and they would subsequently have to pay higher rates.
In addition, it was imperative for people to know that certain lenders like Barclays had levied a charge on the amount transferred into the cards, so that they could make sensible and viable financial decisions. Personal finance head of uSwitch, Nick White added “The balance transfer fee levied by some cards can prove costly to those consumers juggling their debt from card to card.”
All in all, if consumers only concentrated a little more on little details, generally stated in small print, there was no need for worry. Consumers’ could also check out low-rate cards available in the market like the American Express cards at 4.9%. Moreover, it was worth noting that lenders like Nationwide were paying the costliest amount in the customer’s account first, whereas Capital One, Virgin, and Egg were not charging anything for transfers of credit card balances to zero per cent deals.
Posted
on : Thu, 07 Apr 2005 00:00 GMT | Credit Cards News
By : Mark Richardson
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