Consumer champion Martin Lewis was back on our screens tonight with a top tip on how to save money on expensive credit card debt. On tonight's episode of the Martin Lewis Money Show, the presenter shared advice on how to make the most of balance transfers.
Credit and store cards can often be the most expensive type of debt a person can own due to their high rates of interest. An average credit card can have an interest of 20%, meaning the monthly interest alone can make them hard to repay. Thankfully, Martin had a solution.
Speaking on the show he said: "If you have got credit card debts and you need to sort them sooner is safer. If you can't afford to clear your credit or store cards in full you can't afford not to check for a 0% balance transfer.
"It's a new credit card that pays off your old credit card."
While taking out a new credit card may seem counterproductive, the benefit lies in the new card offering an interest-free period for several months - often more than a year. This means you can pay off the balance without the added burden of additional interest.
The interest-free period varies per bank, but the top deal at the moment means that NatWest and the Royal Bank of Scotland are offering 33 months at 0%. This gives customers more than two years to improve their debts.
Martin advised that people look at the credit card eligibility calculator to check for the best deal. The calculator shows your chance of being approved for a card. He said that applying for a card can sometimes be worth it even if the chance is low due to the amount of money that can be saved.
