End of zero per cent balance transfer could see rise in debt advice
End of zero per cent balance transfer could see rise in debt advice
- Wednesday, 1 July 2009The number of people seeking
debt advice could rise as banks become fussier over applications for balance transfers.
With the number of zero per cent interest deals decreasing and banks tightening up their policy on borrowers with imperfect credit histories, a number of people could find themselves paying nearly £300 in interest over the next year.
That is according to research from uSwitch.com.
It was found that one in ten applicants had been turned down for a credit card in the past year. Two-thirds of these were hoping to transfer a balance from an existing card.
According to the Guardian, with the average interest rate on a credit card currently 17.3 per cent and the average balance transfer worth £1,846, unsuccessful applications for a zero per cent credit card would see the consumer pay £284 in interest.
Coupled with the existing economic difficulties currently facing the nation, an increase in the number of people seeking
debt help could well rise.

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