BT debt management options lessen

According to MoneyExpert, people looking to transfer their debt with a BT to take advantage of zero per cent interest offers could be paying as much as £300 for the deal.

“Playing your cards right is becoming more and more difficult as credit card providers raise the stakes on balance transfers,” said Sean Gardner, chief executive of MoneyExpert.com.

“The card firms have seen the penalty fees they can charge cut and have suffered as bad debts have piled up. They are increasingly taking money back through other means and unlimited balance transfer fees are just one method.”

Balance transfer fees were introduced relatively recently but now most providers charge one, often uncapped, with levels as high as three per cent of the transfer amount.

While many people have used BT deals to transfer credit card debt to manage their finances, Mr Gardner warns that they could be adding to it rather than solving it.