Santander offers 27 month balance transfer card with no fee to help you clear debts
Lenders have slashed their 0 per cent promotions on balance transfer cards recently, but there are still interest-free balance cards with no fees on offer
IF you've racked up debt over the Christmas period and need to clear it, Santander's balance transfer card with no fee is a cheap option.
Although lenders have slashed their 0 per cent promotions on such cards by up to a third recently, there are still several interest-free balance cards with no fees on offer.
The Sun has had a look at the current cards on the market, and the cheapest option available right now is .
It allows users fee-free balance transfers for 27 months, before it increases to a typical annual percentage rate (APR) of 18.9 per cent.
If you don’t manage to clear your debt in full, you can simply shift to another fee-free card when the offer expires.
And even if there isn’t one on the market at that time, you can be pretty sure that any fee you pay will be far smaller because your balance is much lower too.
The second cheapest available is , which comes with a fee-free balance transfer length of 26 months.
It then increases to an APR of 20.9 per cent.
Or if you really just want to choose the longest balance transfer offer, the best card would be the , but this comes with a balance transfer fee of 1.99 per cent.
It is followed by the , which would give you a 0 per cent balance transfer rate for 32 months but on a two per cent balance transfer fee.
BALANCE TRANSFER CARDS: WHAT YOU NEED TO KNOW
SHIFTING your balance can be a great way to cut the cost of your debt. But you must use them properly so you don't just add to it.
Always clear your debt - Credit card firms don't offer these deals out of the goodness of their hearts. They rely on you not clearing your balance by the time the 0 per cent deal comes to an end so it can start charging you interest.
Always make your payments - If you don't keep up with your monthly payments, you could lose the 0 per cent offer and start being charged interest. Always try and pay-off more than the minimum payment too to clear your debt quicker and don't spend on the card either.
Check your deal - Like with all credit cards, you might not be offered the headline deal if you don't have the best credit history. Use to see what deals you are likely to be accepted for.
The catch with many of these cards – especially those with the longest 0 per cent windows – is the that you’ll be charged the fee up front.
So on a £2,000 transfer with the MBNA Platinum 33 Month Balance Transfer Credit Card Visa, you’ll have around £40 added to what you owe.
But be warned - only those with the very best credit ratings will be offered such a long deal - so even if you apply and are accepted, you could be offered a smaller 0 per cent period instead and be charged a bigger transfer fee.
If you are interested in a credit card of any kind, you should use an eligibility checker from the lender to work out your chances of being accepted without leaving a mark on your credit score.
If the chances are high, you can apply with confidence but if they aren't that great, you can look elsewhere with no harm done.
Earlier last year, credit reference agency Experian also launched a new online tool, which means you'll be able to see the real interest rates that some lenders are offering before you apply.
How to cut the cost of your debt
IF you're owe a lot of money, it can be really frightening. Follow these tips to take action and start dealing with your debts.
- Don't bury your head in the sand - Check your bank balance at least once a week. Understanding how you spend is the first step towards managing your finances.
- Start budgeting - write down your weekly income then deduct essential bills such as food, energy, commuting and council tax.
Whatever is leftover is your budget for the month. Set aside a chunk to pay down your debts and work out what you'll spend and save. - Cut costs - look at ways you can cut your expenditure such as switching energy provider or swapping from named brands to supermarket essential options.
- Overpay your debts - The more you pay off the less interest you'll pay over time. This is espeically through for credit card debts. With loans or mortgages check first as there may be a mximum you can overpay.
- Prioritise - Things like rent or mortgages, council tax and energy bills may have serious consequences if you miss the payments.If you can afford to overpay, make sure you target the highest interest rates first.
- Get advice - If you can't afford what you owe - don't panic, there's plenty of free help available!
Contact debt charity Stepchange, Citizens Advice or the National Debt helpline where experts can talk you through your options.
You can also get help to prioritise debts and negotiate with creditors to set up affordable payment plans.
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