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Martin Lewis, the founder of MoneySavingExpert.com (MSE), has issued a warning to credit card holders who are grappling with rising costs. He suggests using a “key weapon” to avoid high interest charges and reduce their repayments.
In the most recent MSE newsletter, Martin Lewis revealed: “Figures just released by the Bank of England show consumer credit borrowing soared by £300m in July, and credit card borrowing is up almost 8% over the year. I want to again focus on showing you how to cut existing card costs – especially as we’re tiptoeing towards the high-spend festive season.”
He further added: “The key weapon is a 0% balance transfer, where you get a new card that pays off debt on existing cards, so you owe it instead, but interest-free for a set period.”
Balance transfer credit cards could be a beneficial option if you have debt spread across several different cards or skyrocketing interest rates. They allow you to shift the balance from other cards onto a new one, and you pay no interest for a set period.
This means your debt is easier to pay off because money saved on interest can be used to put toward owed finances. However, it’s crucial to remember that you can’t transfer a balance between cards from the same bank.
