Making interest disappear with 0% credit card offers
If you have a credit card, you may have considered taking advantage of the deals promoted by the credit card companies at some time. Even if you haven't looked at the market until now, it may be a good time to re-examine your options. With an increasingly competitive market, you never know when a card that is ideal for your needs will appear. Currently, there are 67 million cards in circulation in the UK, and our appetite for the credit card lifestyle shows no signs of abating. So it is no surprise that new cards offering better deals crop up so often.
0% on cash purchase cards allow you to make cash purchases and then pay back the cost of the items over a number of months, interest-free. This means that you can pay for your family holiday on the card and then pay it off in the months ahead with no additional interest charges. The length of the 0% offer can be from 3 to 15 months, depending on the card supplier. So if you buy a television for £600 pounds, with a 6 month offer period, you could pay the total off, interest-free, at £100 a month. However, you need to budget carefully with this type of card. If you fail to pay off the full amount of the purchase within the offer period, you will be charged interest on the remaining amount.
In 2006 £133.2 billion was spent on credit cards in the UK and this amount keeps rising every year. If you are one of the many people who spend regularly on credit cards, and haven't kept up with the payments quite as well as you had hoped, then you will be able to see how this type of card can help you financially. It gives you a chance to halt interest charges completely and pay off your debt, rather than just paying off a small amount of the original balance and a large amount in interest payments each month. If you are one of the people barely making your minimum payments each month, this could make a big difference to your finances.
Common practice has been for many people to transfer their balances and then transfer again at the end of the offer period. For example, if you transferred £3000 and then only paid off £100 per month, after 12 months you would have only paid off £1200 before interest charges started on the remaining balance. However, you could then transfer the remaining £1800 onto another 0% balance transfer card and repeat the process again. To stop people doing this, credit card companies introduced a balance transfer fee, usually around 3%. If you transfer £3000 you will be charged an additional £90 for the privilege of ;Card hopping'.
Perhaps you want something special but are one of these people who find it impossible to save. If so, you could consider making the purchase with a 0% on purchases card. These cards can also come in handy if something unexpected happens and you need to buy something urgently; perhaps your washing machine has blown up or your car needs essential work. The advantage of a 0% on purchases offer is you can make the purchase when you need it most, and spread the cost over several months, with no additional interest charges.
With such a competitive marketplace, the credit card industry companies are always trying to come up with better ways to attract new customers. This benefits the discerning customer as it means that offer periods are extended and fees are dropped. Because the credit card market is so fluid, it is a good idea to keep a close watch out for the latest deals. You never know when the best 0% credit card offer will appear.
0% on cash purchase cards allow you to make cash purchases and then pay back the cost of the items over a number of months, interest-free. This means that you can pay for your family holiday on the card and then pay it off in the months ahead with no additional interest charges. The length of the 0% offer can be from 3 to 15 months, depending on the card supplier. So if you buy a television for £600 pounds, with a 6 month offer period, you could pay the total off, interest-free, at £100 a month. However, you need to budget carefully with this type of card. If you fail to pay off the full amount of the purchase within the offer period, you will be charged interest on the remaining amount.
In 2006 £133.2 billion was spent on credit cards in the UK and this amount keeps rising every year. If you are one of the many people who spend regularly on credit cards, and haven't kept up with the payments quite as well as you had hoped, then you will be able to see how this type of card can help you financially. It gives you a chance to halt interest charges completely and pay off your debt, rather than just paying off a small amount of the original balance and a large amount in interest payments each month. If you are one of the people barely making your minimum payments each month, this could make a big difference to your finances.
Common practice has been for many people to transfer their balances and then transfer again at the end of the offer period. For example, if you transferred £3000 and then only paid off £100 per month, after 12 months you would have only paid off £1200 before interest charges started on the remaining balance. However, you could then transfer the remaining £1800 onto another 0% balance transfer card and repeat the process again. To stop people doing this, credit card companies introduced a balance transfer fee, usually around 3%. If you transfer £3000 you will be charged an additional £90 for the privilege of ;Card hopping'.
Perhaps you want something special but are one of these people who find it impossible to save. If so, you could consider making the purchase with a 0% on purchases card. These cards can also come in handy if something unexpected happens and you need to buy something urgently; perhaps your washing machine has blown up or your car needs essential work. The advantage of a 0% on purchases offer is you can make the purchase when you need it most, and spread the cost over several months, with no additional interest charges.
With such a competitive marketplace, the credit card industry companies are always trying to come up with better ways to attract new customers. This benefits the discerning customer as it means that offer periods are extended and fees are dropped. Because the credit card market is so fluid, it is a good idea to keep a close watch out for the latest deals. You never know when the best 0% credit card offer will appear.
About the Author:
Josh White is a finance specialist who writes regularly for popular websites. You can read more about Credit card offers and the 0 percent credit card here.
posted by Debt Consolidation Loan at
3:42 AM
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