Save money on your credit card by switching

13/08/2008

The cost of using credit cards is on the increase as credit card companies increase rates. Rates to make a purchase on your credit are as high as 17.0% APR.  By transferring your balance to another credit card which offers a better rate could save you money.

In The UK, there is usually a balance transfer fee payable which could be anything up to 3% if you choose to switch to another credit card.

"As prices continue to rise, many more consumers are seeing their credit card bills increase. Even if you're not one of the people who is having to use your credit card just to get by each month, the likelihood is that you have been hit by an increase of some sort from your card provider.

"If you now find yourself with a debt on your card and you want to cut down your monthly repayments, the best option is a balance transfer,” Said Michelle Slade, analyst at Moneyfacts.co.uk.

She went onto say that, "The majority of the cards on the market come with a 0% balance transfer deal for a period of between three and fifteen months. Alternatively, if you don't want to keep switching cards and can't pay off the debt during the term of the introductory deal a life of balance card may be more suitable.”