Credit card users urged to read the small print

Credit card users who are looking to reorganise their debts through a balance transfer deal have been urged to read the small print relating to any arrangement they consider.

Lisa Taylor from the financial comparison firm Moneyfacts.co.uk warns that when it comes to transferring credit card debts there are not as many options as may appear to be the case.

In fact, Ms Taylor suggests that almost three-quarters of all the balance transfer deals being offered in the UK are available from credit card firms that are owned by just five different banking organisations.

Furthermore, the Moneyfacts.co.uk analyst is keen to make clear that transferring credit card debt often involves the holder paying fees of varying amounts.

“It’s important to check out the small print of any balance transfer deal and establish who is the credit provider for both your existing and new credit card deal,” she said.

“This said, it’s still worth investing time to find a competitive home for any existing balance, especially when we consider rates have been rising over the last few months and this is likely to continue in 2008.”

Earlier this week, the same financial comparison firm advised consumers to assess their options fully before entering a particular debt consolidation loan agreement.