Barclaycard, CREDIT CARDS

Brits encouraged to switch to 0% credit card

Brits are being encouraged to take advantage of the full range of financial products on offer at the moment and switch their debts to a 0% credit card.

Christmas is now long gone, but many people are still feeling the financial hangover. And as the New Year starts, financial stability is a top priority for Brits.

Price comparison website moneysupermarket.co.uk is urging customers to take advantage of the financial January sales, and switch to one of the zero per cent interest credit cards.

“For consumers still struggling to pay off their existing credit card balance, now is the time to act and move it onto a cheaper deal to help save hundreds of pounds in interest,” said Tim Moss, head of loans and debt at Moneysupermarket.

“Moving onto a zero per cent interest product is a no brainer - it allows you to pay off your existing balance over time without accruing additional interest.”

Currently, the best credit card deal on the market is the 24 month balance transfer card from Barclaycard.

Moneysupermarket point out that by moving an existing £3,000 debt on to Barclaycard and repaying £125 over the interest-free period, £702 can be saved in interest compared to sticking to an existing card with a rate of 18.41% APR and paying the same £125 a month.

“It is important to think about how you plan to pay off the debt and budget accordingly otherwise you could find yourself still paying off your debts when the promotional offer comes to an end,” added Mr Moss.

“Also make sure you set up a direct debit for at least the minimum repayment as missing a payment would result in you losing the promotional deal.”

Research carried out recently found that credit card use went up in 2011, but the value of transactions went down by 4%.

Tags: 0% credit card, barclaycard, best credit card deal, credit card, switch credit card, switching financial products