Balance transfers 'best way to reduce credit card debt'

By Sarah Engle, Fri 4 Jun 2010 - Published in Credit Cards

Consumers should realise that taking out a balance transfer card is the cheapest way of reducing credit card debt, it has been suggested.

Andrew Hagger, spokesperson for Moneynet.co.uk, pointed out that the products have a one-off transfer fee, but this should not dissuade people from applying for them.

"It is normally around three per cent of your balance but it is still much better paying that than it is paying interest on a normal card," he explained.

Mr Hagger added that there are currently a number of balance transfer deals on the market which can be obtained by consumers with good credit histories.

However, the representative recommended people only use the cards for balance transfers and resist the urge to make purchases on them, as this could cause them to incur interest.

A recent poll by moneysupermarket.com found that 63 per cent of balance transfer customers have used their card to make a purchase, despite 29 per cent wishing to avoid this.

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