Credit card balance transfers 'can save people money'

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Credit card balance transfers 'can save people money'

Tue 8th Jun 2010

Carrying out a balance transfer can make it cheaper to pay off credit card debt, according to one industry commentator.

Moneynet.co.uk spokesperson Andrew Hagger noted that the only charge individuals will usually have to pay is the balance transfer fee, which is typically about three per cent.

Despite this, he claimed it is a better way to pay off a credit card debt than being charged interest all year round, in terms of the amount people will end up handing over to the financial institution in question.

"I would say, please don't let the balance transfer fee put you off because it is still a much cheaper way of paying your credit card debt," remarked Mr Hagger.

In his view, as long as people have a solid credit history, they will be able to find plenty of good deals currently.

Recent research by moneysupermarket.com showed that consumers making a purchase of £50 on a card that holds a balance transfer of £2,500 could see them paying up to £106 in interest over the space of a year.

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