It’s all too easy to reach for the plastic when you’re buying Christmas gifts or shopping in the New Year sales. That’s fine, but if you’re not going to pay it all off straight away, you need to make sure you’re not paying more interest than you need to. In the fourth part of our 7 New Year Money Tips, here are some simple ways to help you keep on top of your credit cards.
Switch and save
If you can, it’s always better to pay off your credit card balance in full each month. But we know that’s not always possible! If you can’t, then it’s worth checking what interest rate you’re paying – and if it’s not great, consider a balance transfer to a new credit card.
Search out a better deal
Even in these difficult times, many credit card providers are offering 0% interest rates for long periods – and with fairly low fees. Martin Lewis has searched out some of the best deals for his site, moneysavingexpert.com – and these are our pick of the bunch. Sainsbury’s Bank is offering 0% for 29 months with a 3% fee and £20 voucher, while MBNA is offering 0% up to 28 months with just a 2.79% fee. And if you don’t like the idea of paying a fee to switch, Santander will give you 0% for 18 months, totally fee-free.
Look out for our next New Year Money Tip where we’re investigating whether it’s worth overpaying your mortgage.
Disclaimer: This article does not constitute financial or other professional advice. You should consult a professional adviser if you require financial advice.