Balance transfers ‘can help clear debt’

Britons hoping to clear debt accrued on credit cards may find a balance transfer to be beneficial, according to Moneyfacts.

The financial services market analyst notes that switching to a different product could help to reduce monthly repayments.

Press officer Michelle Slade comments that some lenders have extended their balance transfer periods in recent months, meaning now could be a good time to switch.

She says: “The majority of the cards on the market come with a zero per cent balance transfer deal for a period of between three and 15 months.”

But those who are unlikely to be able to clear debt owing on the card in that time are told that “a life of balance card may be more suitable”.

Moneyfacts warns that making new purchases could hamper efforts to clear debt on the card due to the fact that the highest-interest borrowing is typically left until last to be paid off.

However, financial services provider Nationwide previously told its customers that it pays off the most expensive lending first, helping them to make the most of any special offers on their credit cards.

By Bob Bardsley

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