0% balance transfer cards try to temp new custom

As we wave goodbye to the Christmas and New Year festivities, many people are left struggling with a high level of credit card debt, wondering how best to tackle the issue of repaying the balance without incurring extortionate interest charges.

It seems that a number of credit card companies have already prepared themselves for this eventuality, and have launched a variety of special offers on 0% balance transfer cards in order to tempt maxed out consumers to transfer their Christmas and New Year credit card debts to a card that offers 0% interest on the balance that is transferred for a specified period.

According to data the average interest free period that is being offered on 0% balance transfer credit cards by these credit card companies is nine and a half months, but there are some 0% balance transfer cards that are offering even longer repayments periods where no interest will be charged on the balance that is transferred from other credit cards. This includes a fifteen month repayment period from Capital One and a thirteen month repayments period available through Virgin. However, experts warn that there are some pitfalls to look out for when looking into transferring a balance.

Firstly, state experts, most of these balance transfer credit cards charge a fee for the privilege of transferring your balance, and depending on how much you intend to transfer this could be quite hefty. With some cards charging around two or two and half percent of the amount being transferred this could work out to a hefty sum for those transferring thousands of pounds. Experts also warn that consumers who think that they will be unable to clear the balance within the interest free period may be better off with a credit card that offers s reduced interest rate for the life of the balance rather than a 0% interest rate for a specified period.

Alisdair Milton
14th January 2007