Credit card debts likely to grow

According to Moneyfacts.co.uk, only three cards have no balance transfer fee, so people hoping to switch to cards to take advantage of interest free deals are set to pay the price for transferring debt.

Michelle Slade, personal finance analyst at the website, warned “rate tarts” to think carefully about how they manage their debt and what is the best solution: “The answer to the question may depend on the length of time the consumer takes to repay the debt.”

She said that for consumers who had taken out a debt management plan and could therefore repay what they owe within six months, some deals are worth taking.

However, for those who are unlikely to repay quickly, then a longer interest free deal may be preferable.

For those uncertain which deal, if any, suits them best, advice on becoming debt free could be worth considering.