Consumers ‘should switch to 0% credit cards’

Consumers looking to save money in the new year should use a credit card with zero per cent interest, it has been suggested.

According to Halifax, switching to such a card can help cut the cost of shopping, as consumers using a product with a high annual percentage rate are likely to be paying more than necessary for their goods.

“Too few of us include banking products in our bargain hunting,” managing director of Halifax Financial Services Karen Crowshaw remarked, adding that the current economic climate means it has “never been more important” to find the best deals on financial products.

Customers looking to gain greater control over their finances and cut down their credit card debt in 2009 may wish to follow Ms Crowshaw’s advice and switch to a card offering zero per cent interest.

However, interest rates on credit cards are unlikely to fall in the coming year despite recent base rate cuts, Peter Harrison of moneysupermarket has predicted.

By Tom Musk