Now that Christmas has come and gone and it’s back to normal routine, you may be looking at your bank account and wondering what on earth happened. Overspending at Christmas and New Year is something that we’re all vulnerable to, especially on overdrafts and credit cards, as they’re often the most accessible forms of credit.
In order to make the repayments easier, you may want to look at 0% credit card balance transfers. This means moving your existing debt onto a new credit card which is set at 0% interest for a certain amount of time. Having the debt on a card which won’t charge you extra for the duration of the 0% deal can allow you to pay it back much more easily. It means that you can chip away at the balance without it rising further, meaning that you’ll only pay back what you owe.
Of course, this is often easier said than done, and it can be tempting to spend more on a 0% credit card because you’ll always feel like you’ve got time to pay it off. By making sure that you’re disciplined and you pay off what you can each month, you could save a lot of money in interest and become debt-free much sooner.
To take the hassle out of finding the best deal, we’ve found these 0% credit cards just for you this January:
Longest duration & cashback
The Santander 123 credit card has the longest 0% duration of 23 months, and also includes up to 3% cashback on all purchases, including on fuel. This is a great deal, but comes with a catch – there’s a £24 annual fee to use this card. However, if you have a Santander 123 current account you’ll get the first year’s fee refunded into your account.
No annual fee
• The Halifax credit card doesn’t require an annual fee, so it could be a cheaper option if you’re planning on paying off your debt in fewer than 20 months, which is the maximum 0% duration for this card. Unlike the Santander card, this one works on a sliding scale, so you may only get 16 months of 0% interest depending on the strength of your application.
Best if you're paying off quickly
• The Marks & Spencer credit card comes with a 19 month 0% period, which should be plenty of time to pay off your Christmas debts. However, it charges 18.9% interest on anything you have left after the 19 months has passed, so it’s important to make sure you’ve cleared it before then.
Earn Clubcard points
• Similarly, the Tesco credit card also gives a 19 month 0% interest period, and it also helps you to earn Clubcard points. If you're a Clubcard collector this will boost your spending power, as Tesco offer you more value from your points if you spend them one homewares, clothing, flights, holidays and breakdown cover.
Before applying for a 0% balance transfer credit card, it’s important to ensure you’re able to afford to pay it off on time. Used correctly, these cards can save you a lot of money.
© 2015 Match the Cash Ltd trading as
Guarantormyloan.co.uk. We are authorised and regulated by the Financial Conduct Authority. Interim Licence 661304
Registered in England as Match The Cash Ltd. Registration Number: ZA055459 (ICO)
Registered Office: MATCH THE CASH LIMITED ACRE HOUSE, 11/15 WILLIAM ROAD, LONDON, UNITED KINGDOM, NW1 3ER. Company No. 08667447