Money Saving Expert Martin Lewis has issued new advice for anyone with a credit card or loan debt, sending out an email newsletter tagged 'urgent'. Martin said people can save thousands of pounds by taking action now, in an article newly updated on the MSE website.
The finance guru is urging people to switch their debt to a zero-interest credit card, and has highlighted eight cards with deals that will see you pay no interest for up to 34 months - making it much easier to clear your debt.
Offers are available with banks including Sainsbury's, Santander, Natwest, Virgin and Chrome. Martin said: "Paying credit card interest? STOP. A balance transfer credit card can save you £1,000s by slashing the interest you pay."
He added: "With a 0% balance transfer you get a new card to pay off debt on old credit and store cards, so you owe it instead, but at 0% interest. A card will have a 0% period, during which you pay no interest – for example, 28 months – and sometimes you'll pay a small fee. It means you become debt-free quicker, as more of your repayments reduce the debt, rather than pay interest.
Martin said there are key rules to follow when taking on a zero-interest credit card.
1. Always clear debt or shift again before the 0% or cheap rate ends, or costs can rocket
2. Repay at least the monthly minimum or you may lose the cheap rate
3. Don't spend or withdraw cash – it's usually at an expensive rate
4. To get the 0% and fee, you usually have to transfer within the first one to three months
5. You can't balance-transfer between two cards from the same bank or often the same banking group
The MSE site has an eligibility calculator which will show you which of the deals you are most likely to get, as well as showing you other options.
