On the total contrast with last year’s predictions, companies made a come back by
re-introducing the interest free deals.
Using the
credit card balance transfer, a large number of companies-as data from www.Moneyfacts.co.uk is showing to us- are having a price war since the beginning of this year. Their offers are quite incredible: debtors are being offered the opportunity of paying back until a term of 15 month but without any kind of interest until that very moment. There’s a general atmosphere of a surplus of money and customers might be thinking they entered in the world of all possibilities.
“If you are looking for a short term finance then a zero per cent deal will offer the best savings as long as you repay the balance in full within the deal period or are prepared and able to find another deal at the end of the term” advices Michelle Slade, personal finance analyst from Moneyfacts.
With reference to the phenomenon of “all possibilities time”, the analyst from Manyfacts explains that “for some time the industry has been predicting the death of zero per cent deals and with rising bad debts and falling revenue streams the evidence is again stacking up in favour of its demise.”
Same analyst says that last year free-free deals were almost to vanish as a large number of providers increased the balance transfer fees and a large number of them still, uncapping them.
However, Michelle Slade thinks that there couldn’t have been a better timing for the re- launch of the zero interests than after the Christmas time, when everyone has overspent and therefore this “competitive deals can save you a packet in interest charges.”
Also as an advice, the analyst says that “there are substantial savings to be made so take time to shop around for a more competitive
credit card (…) And don’t always be put off by the upfront balance transfer fees: often the overall savings can soon outweigh this”
Another aspect that a regular client should know before choosing to make a deal with a certain company is the fact that some of the deals may be restricted and most of them are available only to new card customers as a method of attracting them towards the precise company.
So before going all thrilled about a deal that might appear as astonishing at the beginning try to consider for some time all the aspects of the matter because making a mistake with your money is not something that you would want to happen to you.
