Welcome to day 4 of 7 days of our New Year money tips – today we consider how you can approach your credit card debt.
Be smart with credit cards
Christmas and the New Year sales can be a time of indulgence that builds up debt on your credit cards. Ideally you should pay your balance in full each month but when that isn’t possible, a balance transfer may be a good option. The price war for balance transfers is gaining traction and as an example of this, Halifax has launched two new balance transfer credit cards – including the longest fee-free 0% deal on the market at 38 months. Amid the seasonal battle to grab new customers as they rush to spring clean finances, Virgin has also announced a similar offer and many more providers look to follow suit. It’s always worth proceeding with caution as extra fees may apply and there may be small print that void the 0% rate. For example, one provider’s terms and conditions state: “We will start charging the relevant standard rate or fees if you miss a minimum payment or exceed your credit limit. We will not restore the preferential terms once we have withdrawn them, even if you do later comply with your obligations to us.”
Disclaimer: This article not constitute financial or other professional advice. You should consult a professional adviser if you require financial advice.
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