Balance transfers the cheapest way to pay off credit cards

Balance transfers the cheapest way to pay off credit cards

Transferring your credit card balance to a new card with a 0% rate on balance transfers is a much cheaper way to pay off debt, even when balance transfer fees are taken into account, a financial expert has claimed.

Andrew Hagger of Moneynet.co.uk said the typical 3% one-off fee for balance transfers is significantly less than the interest rate on a credit card.

“Please don’t let the balance transfer fee put you off because it is still a much cheaper way of paying your credit card debt,” Hagger said.

He added that borrowers who take out a new card for a 0% balance transfer rate should only use the card to pay off debt and not for anything else.

In related comments, Hagger said that despite the credit crunch, consumers with a strong credit history can still find good deals on loans and credit cards.

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