I just read a very interesting article on balance transfers over at Rob Lewis’ Money Watch site.
Many people have built up outstanding balances on credit cards over the last few years, using their cards to meet day to day living costs, as well as more expensive purchases.
What many don’t realise though is that they do not have to keep the balance of their card with that same provider. By “transferring” to another credit card it can be beneficial in terms of maybe a discount or 0% interest charge for a period of time.
With Bank of England Base rates so low at the moment, and with the slow down in economic activity many people are feeling the pain in terms of the interest rate they are being charged for the outstanding credit card balances.
If you have several credit cards with outstanding balances then check out our “debt snowballing” article