Borrowers urged to move debt to a new balance transfer credit credit

Borrowers are being urged to move debt to a new balance transfer credit card before the best deals disappear.

There are just 66 balance transfer cards on the market, compared with 94 last year, according to finance analysts Defaqto.

Balance transfer cards allow customers to shift their credit card debts to a new card. Many offer lengthy 0 per cent periods giving borrowers time to clear a balance without paying interest. 

Card tricks: There are just 66 balance transfer cards currently on the market, compared with 94 last year, according to finance analysts Defaqto

Card tricks: There are just 66 balance transfer cards currently on the market, compared with 94 last year, according to finance analysts Defaqto

Card tricks: There are just 66 balance transfer cards currently on the market, compared with 94 last year, according to finance analysts Defaqto

Typically, there is a fee for doing this, but it can be cheaper than paying the interest with the old provider.

Nervous lenders are pulling deals and cutting the interest-free terms.

TSB’s Platinum Balance Transfer card currently offers the longest 0 per cent period at 29 months with a 2.95 per cent transfer fee. 

Two years ago you could get as many as 34 months to clear your debts. If a shorter interest-free period is suitable, Santander’s Everyday Credit card offers 18 months and does not charge a fee.

If you are not eligible for a balance transfer credit card and have debts of more than £7,500 you might consider a loan, as they charge lower rates than typical credit cards, which are around 22.4 per cent. 

Cahoot and TSB offer the lowest loan rates at 2.8 per cent.

a.murray@dailymail.co.uk

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