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Rate Tarts 17/3/05The fight is on as more and more credit card customers turn into “Rate Tarts” to battle back at credit card company’s that have had it to easy for to many years now, and it has all been brought about by themselves, as they greedily started vying for each others customers with special offers of 0% on balance transfers and purchases to tempt us to change cards. Well many of us have and started to use it to our advantage and guess what the credit card company’s don’t like it one little bit, with some cards with APR rates as much as 30%, with consumer debt on these cards standing at £60 billion in outstanding balances, on 74 million cards, credit card company’s don’t like the fact that their customers are becoming a little more educated on the way that they work. If you don’t know the way that “Rate Tarts” work then let me try to explain. With all the 0% deals on the table at the moment being offered by the credit card company’s, was seen as a window of opportunity by a few to move their debt from their existing card that was charging interest to one of the interest free cards that were giving periods of 6-12 months of no interest payments. This was saving a lot of cash, so before the period was over and the interest kicked in, 6 weeks before this was meant to happen they changed to another credit card, with a 0% balance transfer giving another period of interest free debt, which also gives more time to pay the debt off and at less of a cost to your pocket. The down side to this though is that you must never use the card that you have your balance transfer on, this will only lead to you putting yourself in a worse position than you were to start with. This because the credit card issuers will put any payments that you make back into paying off the balance transfer, thus leaving the new purchases that you have made building up interest, till your original debt is paid in full.
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