24 March 2005
Barclaycard's innovative new Combinations credit/loan card has received support from leading financial comparison group uSwitch.com.
Nick White, head of personal finance at uSwitch.com has described the cards as "a good way of consolidating debts" that could be of particular benefit to the "less disciplined payers".
He said: "It is clearly an innovative product and the option of being able to transfer a credit card balance three times a year into a separate loan pot is certainly an appealing prospect for credit card spenders that do not clear their balance at the end of each month.
"The flexible repayment options are also an attractive for spenders who may not want to be tied to a specific repayment period for their loan. One thing to be aware of however is that shifting the balance from the card to the 'loan pot', so the balance exists at a lower rate, may serve only to create a false comfort zone as spenders are less inclined to pay off the new balance."
The financial expert did issue a caution to consumers however, suggesting to them that this product is by no means the only solution to financial problems.
"Ultimately, better deals do exist in both the credit card and loan markets, and although the new Barclaycard offering may appeal in terms of convenience, at this present time with sub six per cent loan rates and credit cards offering sub seven per cent rates, then, financially, spenders will be better off keeping their debts separate."
Compare all UK personal loans at uSwitch.com and find the one to suit your needs.
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