Balance Transfer Credit Card UK

A balance transfer credit card in the UK could be the answer to your interest payment woes.  Let's face it:  interest rates slapped on unpaid credit card balances can be sky high - perhaps even outrageous - and that's what can end up putting a strain on your budget.

Given that a balance transfer credit card equates to 0% interest payments on the amount transferred - sometimes for as long as nine months - would it not make sense to switch the balance of an existing card to a balance transfer credit card UK?  This would help gain leverage and obtain a decent period of grace to get things back on track before re-starting interest payments again.

The idea of credit card consolidation is a financially healthy practice.  If keeping track of all credit card payments has become a cumbersome and tedious exercise, the solution might very well lie in credit card consolidation. 

Everyone agrees - credit card debt can be crippling.  If individuals are unable to pay off the entire balance every month, credit card debt can turn easy credit into financially impossible repayments which build and build.  Instead of allocating the family's monthly budget to essential purchases such as food, shelter and clothing, a substantial portion of cash goes to paying credit card interest.  Some credit card companies even charge as high as 18% per annum on unpaid balances.  Say for example your credit card debt amounts to £3,500.00. Can you truly afford to pay £630.00 per year on interest alone?  And remember, the main amount still has to be paid.  Imagine what £630.00 can buy instead.  Why let that money go to waste on credit card interest payments and credit card debt?

Once a decision is made to apply for a balance transfer credit card, probably the best and quickest way to go is the internet.  Money experts, lenders and financial brokers know all about credit cards, and are aware of what companies are offering the best deals to suit all circumstances.

Where does one start?  The easiest and most effective approach would be to go to moneyeverything.com to obtain information about all the different cards and rates.  They are one of the largest sources of information on the Net and the hard work has already been done for you. See what they've compiled in terms of the most favourable balance transfer credit cards in the UK.  They also have a helpful credit card guide that provides tips on credit card use and how to reduce credit card debt.

Individuals should not be misled by the 0% interest on balance transfer credit cards, because companies actually offer two types of balance transfer.

(1)  There are 0% deals covering a period of six months to nine months, but to maximise on this deal, the balance transfer must be repayed before the end of the 0% grace period; given that nine months is less common than three or six months, not many companies extend offer nine months.  Those that do usually impose a slightly higher standard variable rate on purchases made with the card;

(b)  There are balance transfer credit cards that carry 4% to 6% on balance transfers for the life of the card.  This is a good way to save money, since the interest rate is much lower than that of a regular card card UK, but purchases are still charged the standard variable rate.

Standard variable rates for balance transfer credit cards range from 11.9% to 17.9%.