Increase in 0% interest deals could help those with debt problems
Increase in 0% interest deals could help those with debt problems
- Wednesday, 9 June 2010Levels of
credit card debt could be reduced as card providers offer more reward schemes and lower rates.
According to Moneyfacts, the number of cards charging no interest on new purchases for at least ten months has increased by 450 per cent in the last 12 months.
Credit cards that offer zero per cent on balance transfers for at least ten months have grown in number by 20 per cent in the same period.
Michelle Slade, spokesperson for Moneyfacts, said: "Customers looking to make new purchases can find cards offering no interest for a year. Customers needing to repay existing debt can find deals charging no interest for 16 months."
By using a balance transfer card, consumers living with
debt problems can pay their creditors without accruing extra interest.
An example of the reward schemes available is the one offered by Egg.
On June 5th the firm launched a new credit card that gives users a typical ten per cent cash-back on purchases from over 1,500 retailers, supermarkets and restaurants.

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