According to suggestions from financial comparison website uSwitch, the problem with zero per cent interest credit cards was that banks lost control of the system, with the business being led by whichever provider offered the rate for longest.
“As a lender you can’t beat a zero per cent deal except to do it for longer,” Nick White, head of personal finance at uSwitch, said.
“Once one lender had done it the others were forced to follow and it took on its own logic.”
With personal debt levels standing at over £1 trillion, the incentive to take out zero per cent credit cards is still apparent. Current credit card debt could be transferred to a zero per cent credit card in attempt to make debt more manageable.
The number of zero per cent credit card deals available is very low compared with six months ago, however and despite the biggest banks adopting a united front and “[holding] their breath and [hanging] on with low rates for longer”, the end seems nigh for the zero per cent credit card.