UK Credit Cards Balance Transfers

It has been observed in a study that about one third of credit card holders in the UK fail to pay their monthly credit card bills and most of these people use the balance transfer offered by other credit card companies. This really saves a lot of money as the users get the benefit of lower interest rates offered by other credit cards on balance transfer.

Under those offers, a big amount outstanding in your monthly credit card gets transferred to another credit card account. This makes a lot of savings for the users of UK credit cards on the interest front as these offers come with low or no interest. A survey has observed that if all the credit card users in the UK use this facility, then more than 2 million pounds can be saved every year.

The credit card companies charge a nominal 2% fee on the balance transfer amount and that is basically the charge to compensate for the interest free period. Once the interest free period is over, they charge a small interest for eight to nine months and if the payment is not made within that period, the interest rate goes up very high and you may enter into a debt trap.