Balance transfers 'becoming limited'

18 April 2008

Consumers with credit cards looking to transfer their balance interest-free have been warned that the options open to them are dwindling.

Debt Advisor at National Debtline Beccy Boden-Wilks noted that the availability of such deals is on the decline as the credit crunch begins to bite.

While in the past consumers would reach the end of their present deals and simply be able to switch without too much hassle, she commented, now lenders have tightened their criteria.

And this is also having a "knock-on" impact towards other repayments such as mortgages, Ms Boden-Wilks highlighted.

She said: "If people can't afford their non-priority debts anymore sometimes they'll stop paying their mortgage as well. It's definitely having a knock-on effect.

Although people with a positive credit history may still find that the choices they can make have not been limited to a great extent, she added.

About £1.1 billion will be transferred each month this year on credit cards by 716,000 consumers, according to Sainsbury's Finance.

If you're paying too high an interest rate on your cards then it's time to transfer your balance to a different card. uSwitch.com's impartial and comprehensive service lets you compare credit cards so you can find the one with the best rates and switch online, for free. Do a balance transfer and cut your interest today.

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