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Wed 2nd Apr, 2008
Posted in Bad Credit, Personal loans, Debt Consolidation, UK Finance, Credit Card, interest rates, Consumer debt, Financial products, Spending, Credit record, Balance transfer, Unsecured loans, Borrowing, Personal debt, Debt management, Zero percent cards, Missed payments at 12:54 pm by admin
If you are considering switching from your current credit card provider to a new one because you are having trouble paying back your balance then it would be helpful if you were aware of a few pointers first.
Many credit card companies offer very low interest rates on balance transfers; sometime this can be as low as zero percent. But there is a time limit on this balance transfer. So for example if you need six months to pay off your debt and the zero percent interest on balance transfers apply for the first six months then this is an option worth considering. This could possible save you from having to pay back possibly hundreds in interest fees.
Make sure you read the fine print on the deal before signing and take care to make all repayments on time. Missing a payment or paying late can result in the lender replacing your great rate with a much higher APR, leaving your paying more than if you had taken out a debt consolidation loan to clear the original debt.
Another danger is if you do fail to pay back the balance within the given time period the zero percent will revert back to the a much higher rate on the card and sometimes this includes the lender back-charging interest on the first six months of the loan as well. This could result in repayments outweighing the benefit of the zero interest on the first six months.
Lenders do have a responsibility to warn you if the introductory offer of zero percent is about to run out. However as a general rule its better not to trust to this reminder jogging your memory, as it can often be buried in small print. Just make sure you yourself are always aware of the time limit on your offer or one morning you could wake up to a big surprise.
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Wed 16th Jan, 2008
Posted in Consumer Credit, Debt Consolidation, UK Finance, Credit Card, interest rates, Financial products, Balance transfer, Financial news, Borrowing, Bank charges, Debt management, Zero percent cards at 12:16 pm by admin
According to a report from MoneyExpert.com, banks made more than £239 million in transfer fees from credit cards offering zero percent interest rates in Britain in the last year.
Many customers choose a zero percent interest rate credit card to help manage their finances, however many credit card companies are charging customers transfer fees of up to three percent of the balance. If someone with a £5,000 debt is charged 3% they will then have to pay a fee of £150. The Office of Fair Trading is considering looking into these fees.
Many consumers who want to save money on their interest payments and manage their debts have used a zero percent balance transfer deal. Almost all credit card providers who offer zero percent balance transfers now charge a handling fee anywhere from two percent to three percent of the balance being transferred. The balance transfer handling fee became widespread after banks and building societies were hit last year by the Office of Fair Trading on charging penalty fees, so the banks then sought another source of income, which has come to be the transfer fees on zero percent balance transfer cards. According to the report almost 12 million people have switched credit cards over the past year with an average fee of £19.99.
Balance transfer credit cards are ideal for those who have large sums that they want to pay off and avoid paying interest on. However, as you are searching for a credit card with a zero percent balance transfer you will want to compare the handling fees that the credit card provider will charge as some will only charge a flat rate, while other will charge a percent of the amount being transferred.
Bear in mind too how long you realistically expect to take to pay off the debt. You may know that the 0% period only offers you a break from paying interest and that you cannot clear the outstanding sum in that time. If so, you will want to calculate how much interest you will be paying once the period is over. It may cost you less money and hassle to arrange a debt consolidation loan. Although a loan will attract interest from day one, at least you are committed to a set period to repay at a rate that won’t change.
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Tue 23rd Oct, 2007
Posted in Consumer Credit, UK Finance, Credit Card, interest rates, Financial products, Balance transfer, Borrowing, Personal debt, Debt management, Zero percent cards at 11:29 am by admin
If you are considering switching from your current credit card provider to a new one because you are having trouble paying back your balance then it would be helpful if you were aware of a few pointers first.
Many credit card companies offer very low interest rates on balance transfers; sometime this can be as low as zero percent. But there is a time limit on this balance transfer. So for example if you need six months to pay off your debt and the zero percent interest on balance transfers apply for the first six months then this is an option worth considering. This could possible save you from having to pay back possibly hundreds in interest fees.
The danger is if you do take that option and you fail to pay back the balance within the given time period the zero percent will revert back to the normal rate of the loan and this includes the lender then charging for interest on the first six months of the loan as well. This could result in repayments outweighing the benefit of the zero interest on the first six months. Banks do have a responsibility to warn you if the introductory offer of zero percent is about to run out. However as a general rule its better not to trust banks if you can help it when it comes the things like this. Just make sure you yourself are always aware of the time limit on your offer or one morning you could wake up to a big surprise.
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Mon 1st Oct, 2007
Posted in Bad Credit, Consumer Credit, Personal loans, UK Finance, Credit Card, mortgages, Consumer debt, Card fraud, Identity theft, Credit record, Borrowing, Fraud, Zero percent cards at 1:28 pm by admin
Identity fraud is a growing concern in the UK with many Britons falling victim and costing the economy an estimated £1.7 billion a year. One way that people can fall victim is by leaving unused credit card accounts open. According to Apacs, at the end of 2006 31.5 million people in the UK held an average of 2 personal credit and charge cards. However, according to the research there are around one in three cards that are no longer active, which can cause concern for some. One reason why someone may no longer use a credit card account is because they originally opened the account to take advantage of the 0% interest on balance transfers and once the balance was paid off they never used the card because of the high interest rate, or because they transferred the balance over to another 0% credit card once the offer has expired. This means that there are many people who are moving their balances from one account to another account and often forgetting to close the account once it is no longer in use.
If you fail to cancel your cards once you stop using them you may end up forgetting that you ever had them. Often if your account has no activity you will most likely end up not receiving a statement to remind you of the account. So if someone gets a hold of your information and changes the billing address, you will easily miss that and fall victim to identity fraud. Once someone has your details they can easily go further and take out expensive personal loans or even mortgages in your name. Typically these fraudsters will very quickly default on payments, leaving the black marks on your credit record. Often the first you will know of the matter is when you yourself are turned down for loans or mortgages.
One way of protecting yourself is by checking your credit report, and if you find in-active accounts listed on your report, then you should close them the ensure you do not end up a victim of fraud.
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Wed 1st Aug, 2007
Posted in Consumer Credit, Personal loans, Homeowner Loans, UK Finance, Credit Card, Consumer debt, Spending, Unsecured loans, Financial news, Borrowing, Personal debt, Secured loans, Debt management, Zero percent cards, Budgeting, Tenant loans at 1:34 pm by admin
How much should parents spend getting a nursery ready for their new baby? Well, regardless of what you might think, new figures from Halifax Home Insurance show that the average price of kitting out a nursery is now £2,628. This is the average amount of money that people are spending on everything from designer furniture to autographed football kits and original works of art for their children’s new nurseries.
It appears as if many parents are living out their own childhood fantasies with the items that they are buying for their newborn children. While it is nice to see so many parents splashing out on their children, the fact of the matter is that their new babies will not remember or appreciate any of it.
As well as getting more fancy decorations, baby nurseries are also getting more high tech, with many parents installing televisions, two way baby monitors and even CCTV equipment so that they can monitor their children.
It is amazing how quickly the cost of such equipment can mount up. Even if you just stick to the standard equipment, you will find that it can be quite expensive to prepare for your new child, with clothing, toys, baby equipment and furniture racking up quite a bill by the time you’ve bought everything. With many parents already looking at reduced income once one parent stops working, loans and credit cards are being used to fund nursery purchases.
The important thing for parents to remember is that they will have their baby for life, and there will be a lot of expenses later on that will turn out to be more important for their child, such as childcare, medical care and education costs. Perhaps some parents should consider putting some of this money aside for later use, rather than spending it all before the baby is even born. Whilst cheap loans and zero percent credit cards can offer what seems a good way to buy nursery needs, getting into debt with little idea of what the future holds in expenses and income is probably unwise.
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Fri 1st Jun, 2007
Posted in Consumer Credit, Debt Consolidation, UK Finance, Credit Card, interest rates, Consumer debt, Spending, Balance transfer, Borrowing, Personal debt, Debt management, Zero percent cards at 1:00 pm by admin
Many people with credit cards may find that they can easily fall into debt if they do not control their spending and pay off their balance in full, as the credit card interest rates can quickly add up. If you find that you are swimming in credit card debt here are a few steps you can take to get out of the debt trap:
- If you have multiple credit cards you will want to come up with a written plan on how you will consolidate your debt. If you decide to consolidate you debt onto one credit card through a balance transfer then you will want to make sure that the total amount that you want to transfer is correct. You will need to take into consideration overlap periods and interest calculations to avoid paying more interest than you need to.
- You will want to utilise offers from credit card companies such as a 0% interest rate on balance transfers and make sure that you are aware of the expiration date of the offer and what the rate will be once the introductory period is over.
- As you are searching for a balance transfer credit card you will want to check through the offer carefully and make sure that there are no hidden fees. You will want to compare the APR for credit cards and check on what the balance transfer fees include. Before you choose a card you will want to make sure you have made the right choice and carefully review the offer.
- You will want to keep track of the 0% interest rate period and try to pay back the full amount of the balance before the period is over. If you know that you will not be able to pay off the full amount before the introductory offer is over then you may want to start searching for another balance transfer credit card as you can save yourself hundreds through interest charges.
Your main goal should be to get out of debt and you should use whatever means possible to reach that goal. A 0% balance transfer credit card is an ideal way to get rid of credit card debt. However as you are consolidating your debt you must make sure that you do not run up additional debt, by being disciplined and sticking to a plan you will quickly recover from debt.
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Fri 4th May, 2007
Posted in Consumer Credit, UK Finance, Credit Card, interest rates, Financial products, Spending, Balance transfer, Borrowing, Zero percent cards at 11:10 am by admin
There are many credit card offers with a 0% interest rate on balance transfers, which is an ideal choice for cardholders that have balances on other credit cards with a high interest rate. By transferring a high-interest balance to a credit card with a low rate, you can save yourself a lot of money as well as free yourself from debt much quicker. However, you will want to be aware of the terms and conditions that these 0% balance transfer cards offer.
As you are comparing credit cards that offer 0% interest on balance transfers you will first want to check the time limit on the offer, as most of these cards offer the rate for an introductory period from 3-6 months, or longer. The longer the length of the introductory period, the better. You will also want to know what the interest rate will be once the introductory period is over, so that you will be prepared to pay the interest rate once it kicks in.
You will also want to know what the 0% interest covers. If it only covers balance transfers, then you will want to ensure that you make no purchases on the card. If you end up making purchases on a card that offers 0% only on balance transfers then your purchases will be subject to a higher interest rate, and when you make payments on the card the payments will go towards the 0% interest rate balances first. That means that the new purchases will continue to revolve on the card and rack up interest costs until the lower interest rate balance is paid off. So be aware of what the 0% interest rate covers before borrowing money on a credit card.
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Thu 26th Apr, 2007
Posted in Consumer Credit, UK Finance, Credit Card, interest rates, Financial products, Borrowing, Zero percent cards at 9:24 am by admin
Selecting a new credit card can often be confusing and overwhelming with the number of offers and deals that are currently available on the market. Borrowing money in any form is a serious matter and because it can be a bit confusing or intimidating, you may often end up choosing the wrong card and then later regret your decision after all the interest fees and charges have hit you. To avoid the mistake of choosing the wrong type of credit card, there are a few things that you should consider before applying for a new card.
Before you start your search for a credit card, you will first want to ask yourself why you will need a new credit card. Your reasons could be that you want a card with lower interest rates than your current cards, another reason could be that you want to transfer a balance on a card to one that offers a 0% introductory rate. Once you have determined the reason for your new card, you can then narrow down your search on the type of card you want. By searching on credit card comparison websites, you will be able to select the type of card you wish to find and the site will pull a list of several credit card companies that have offers on what you are looking for. For example, if you are searching for a 0% introductory interest rate the site will post a list of cards starting from the best offer.
When you are searching for a card, you will want to keep in mind the reason you are applying for a new card, as well as other benefits that you want to gain from the card. By keeping focused during your search, you will be able to find a card that is right for you and that you will not regret applying for.
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Wed 11th Apr, 2007
Posted in Consumer Credit, UK Finance, Credit Card, interest rates, Financial products, Spending, Borrowing, Online shopping, Zero percent cards at 11:05 am by admin
If you are looking for a new credit card, or would like to find one to replace your existing card, then you can start by searching online for the best credit card available on the market. You can do this by searching on credit card comparison sites. These websites are a great online resource that allows you to compare the current rate and rewards with other cards to ensure you receive the best offer on the market.
If you receive an offer for a credit card in the mail, you can then compare the rates and terms that are being offered with the cards listed on the credit card comparison websites. These sites will rank credit cards from the lowest interest rate and best offer to the least beneficial offer. A good credit card comparison site will review the credit cards and explain the fees and terms that are found in the fine print. You will want to find a site that thoroughly researches at least over 200 credit cards offers giving you a range of options. Majority of credit card comparison sites will allow you to sort the cards by types, such as air miles cards, cash rebate cards, 0% balance transfer cards, business cards, student cards, annual fee cards and much more. It all depends on what you are searching for and what benefits you want from your credit card.
You will also want the benefit of being able to apply for a desired card directly from the card comparison website. If there is a link for the card you wish to apply for it will make it easier for you to find the deal that you want.
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Tue 3rd Apr, 2007
Posted in Consumer Credit, Personal loans, UK Finance, Credit Card, interest rates, Consumer debt, Spending, Balance transfer, Unsecured loans, Borrowing, Personal debt, Secured loans, Debt management, Zero percent cards at 11:16 am by admin
Many consumers today use their credit cards for holiday shopping, with the intention of paying off the debt after the holiday season. However, most people rarely end up paying off their debts immediately after the holiday season, and end up stuck with the holiday bill which is often carried over into the next holiday season.
Choosing to use your credit card during the holiday season can turn into a bad decision. On the one hand credit cards are convenient and it is safer than carrying cash everywhere you go. However, if you get carried away with a credit card it can be disastrous, and end up putting you in debt. If you are sensible about what cards to use and when to use them, then you can make the best out of your credit cards.
If you are searching for a card especially for the holiday season, then you will want to consider applying for a credit card with a low interest rate, or an introductory 0% interest rate on purchases. If you already have an existing card, then you may want to consider doing a balance transfer to a 0% interest rate card after the holiday season to help you gain a head start on paying off those presents.
You will also want to take advantage of the holiday sales. Many stores start to make down the price on items weeks before the holiday season, so keep an eye out for deals on specific items or toys. Homemade gifts are a cheap and thoughtful gift to give to friends and family. There are a number of ways to save during the holiday season, an if you can avoid using your credit card, then do so.
If you are still struggling under the weight of credit card debts from holidays past, you may be wisest to consider transferring the debt to a personal loan. Loan interest starts as low as 5.7%, compared with a typical credit card APR of 15.5%.
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