Waiting until the New Year to shift your credit card balance can prove an expensive mistake

Every year millions of consumers make New Year’s resolutions and for a good number of those people it means consolidating their credit card and overdraft debts on to a zero per cent balance transfer deal.

Personal Finance expert, Andrew Hagger said: ” if you’ve got a solid balance that you’ve been carrying over from month to month, it makes financial sense to sort it out now rather than wait for 2017 to arrive and trigger you into action.”

“By getting ahead of the game and switching now you’ll save yourself two full months’ worth of interest and for someone with a £7,500 card balance at a market average of 18.9% APR that’s a saving of £236.25.”

So while we’re all looking of ways to keep the cost of Christmas down, there’s an obvious saving opportunity staring many people in the face every time they open their monthly credit card statement.

According to the latest statistics from The British bankers Association there is £26.8 billion pounds worth of credit card balances upon which interest is being charged – at 18.9% APR average this works out at £13.8 million in interest every day so there’s plenty of people who could save a good bit of money by switching  – as long as they have a decent credit record.

Individual cost savings depend on the current balance and interest rate being charged, however the following table gives you an idea of the amount of money you could save by acting early.

 

Existing Credit Card Balance Amount saved by switching 2 months early – based on APR 18.9%
£3000 £94.50
£5000 £157.50
£7500 £236.25
£11,000 £346.50

 

Credit card lenders are falling over themselves for your custom at the moment, so why not get your New Year’s resolution in ahead of the game and give your finances an early boost as a result.

Posted in: News Read More →

Most Popular Right Now