Updated on December 6, 2018
Not very long ago, lenders were more than willing to open as many credit accounts as you might have demanded, but since the subprime crisis, the finance market dynamics have taken a complete U-turn. Not wanting to face a similar crisis situation, lenders in UK have become quite wary of opening new credit lines and what is even worse is that some of them have gone to the extent of closing existing lines of credit. However, you need not worry too much because in UK’s financial market, there is one credit option that has still not lost all its sheen. Yeah, you guessed it right, I am talking about the 0 % credit card debt transfer deals that are still being marketed quite aggressively by credit card companies.
It might be difficult for you to believe this, but the fact is that there are currently around a hundred 0 % credit card debt transfer schemes available in UK. Something that I find even more surprising is that in spite of the subprime crisis, credit card companies seem to be virtually begging to take over your debts and transfer it to a new account. Some experts criticize 0 % transfer deals saying that they are just innovative strategies to lure in new customers, but I do not personally agree to such accusations because I believe that it’s the card holder who benefits the most from a 0 % transfer deal. Benefits accrue to credit card companies as well in the form of transfer charges and processing charges, but if you compare these with the 3 percent monthly rate that is usually charged on the outstanding credit card debts, you will realize that the initial transfer and processing charges are a small price to pay.
If you are not too sure about the potential of 0 % transfer deals, I would like to tell you that they are the easiest ways of slashing interest charges that you pay on the outstanding amount of your existing credit cards and store cards. The application process is quite easy and all you need to do is request your preferred card company to open a 0 % credit card account in your name. After approval, you can move your exisiting debts and shift them to a new repayment plan wherein you will not be required to pay interest for the agreed period. This interest-free period can range anywhere between 3 to 15 months depending on the card company and this is why you especially need to consider this while assessing 0 % credit card debt transfer deals. Opt for a deal that offers the maximum interest free period and soon you will be on your way to financial freedom.
Do you have a Credit Card where the contract was issued before the 1st of April 2007? If so, you may want to find out more about Personal Finance Claims’s new credit card service.
If the contract which you signed when your credit card was issued is found to be flawed or unenforceable, here’s what you may be able to claim for…
# You may be able to claim interest paid on any oustanding balances
# You may be able to claim the repayments you have made
# You may be able to claim to clear the outstanding balance on the card