WE are slap bang in the middle of the year, making it the perfect time to check in with your finances.
The last six months will undoubtedly be pricey for many, with household bills rising and there are still the summer holidays to plan for.
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If you have fallen into the red or are struggling to keep up with your credit card payments, a 0% credit card is just one way to manage your debt.
This type of credit card allows you to move debt from one card to another without paying interest for a set period.
It can help you pay off what you owe faster, but in some instances you may have to pay initial interest to transfer your debt across.
Numerous providers offer these types of deals, including M&S Bank.
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The lender currently has a 0% transfer card, which means you pay no interest for 25 months but after this period ends you will pay 24.9% APR on what you have not cleared.
Another option is Tesco Bank which is running a 22 month 0% transfer but interest is set at 26.9% after this period ends.
You can use an eligibility checker, such as the one on Money Saving Expert, to see if you are likely to be accepted.
This is free to do and won’t impact your credit score.
While it may be tempting, you should also avoid spending on these types of credit cards.
That is because it will pull you further into debt and it could mean you do not clear what you already owe before the higher interest kicks in.
With that in mind, it may be worth setting a reminder of when the offer runs out so you avoid going further into the red.
Rachel Springall, finance expert at Moneyfacts, said: “Credit card holders who do not have a 0% offer and only pay the bare minimum back each month will have the debt sitting overhead for much longer than they might realise.
“A £2,000 debt would take two years to pay off if someone repaid a fixed £115 every month if being charged 36.0% APR, costing almost £700 in interest. “
She added: “However, those who move this to a 0% balance transfer card can clear it in just over 12 months by making £150 monthly payments. “
You can compare offers which are right for you by using sites such as ComparetheMarket or Moneysupermarket.
But if you are struggling with debt then you can get help from charities and groups including:
National Debtline – 0808 808 4000
Citizens Advice – 0800 240 4420
StepChange – 0800 138 1111
How to shift your credit card debt quickly
By James Flanders, Consumer Reporter
UK Finance reports that we spend a whopping £2 billion a month using our credit cards.
While that little strip of plastic makes everyday spending easy peasy, it comes at a huge cost.
According to The Money Charity, the average credit card debt sits at £2,485 per household or £1,312 per adult.
And if you’re stuck on a credit card with a high APR and only making the minimum repayments, you could be forking out hundreds of pounds extra in interest charges.
For example, if you owe £1,312 on your credit card and are charged 24.8% APR.
If you don’t make any more transactions and pay £100 a month in repayments, you will pay off the card by September 2025 but at £207 in interest.
However, by hunting around for a better deal elsewhere and switching to a balance transfer credit card with a lengthy interest-free period, you can save yourself £162.
If the same person was accepted for a 28-month-long zero-interest credit card with a 3.4% balance transfer fee and made the same £100 repayments each month.
They would pay off the debt sooner, in July 2025, and only fork out £45 towards the 3.4% balance transfer fee.
Before taking out a new credit card or increasing the amount you borrow, it’s vital to consider the consequences.
You should only borrow money if you can afford to pay it back.
It’s always vital to ask yourself if you need to borrow before committing to a new credit card, personal loan or overdraft.
If you use a credit card, I’d recommend that you always pay off your balance in full at the end of each statement period.
Lenders have a responsibility to help customers who are in debt.
If you’re in a debt crisis, your first point of call should be your lender.
They might help you out by offering you a reduced interest rate or a temporary payment holiday – so check in with your lender if you’re struggling.
