MARTIN Lewis has revealed a “key weapon” for households struggling to keep up with credit card debt.
The consumer champion has outlined a new balance transfer card which allows you to pay no interest on the amount you owe for more than two years.
The Virgin Money 0% balance transfer card gives you 29 months interest-free, which is the longest period of any card on the market.
Everyone who gets accepted receives the full deal, which can give them breathing room to begin paying off their credit card debt.
In the MoneySavingExpert newsletter Martin Lewis said: “As we always say, a top 0% balance transfer is the core weapon for cutting credit card interest.
“If you can’t afford to clear your credit card, you can’t afford not to check this out.”
The card works by allowing you to move your credit card balance from another credit or store card to the Virgin Money credit card.
There is a 3.45% fee to move your money.
It means you can begin paying off your debt without accruing more interest on your balance, helping you to pay off what you owe faster.
A balance transfer credit card could be a useful option if you have debt spread across a few different cards or the rate on them has soared.
However, you can’t transfer a balance between cards from the same bank.
You can also get 29 months to pay off your balance with the HSBC Balance Transfer Credit Card Visa.
Some people will get the full 29 months to pay their balance back but others will get a shorter period depending on their credit score.
This card has a 3.49% fee to transfer your balance and will charge you 24.9% once your interest-free period is over.
Meanwhile, the Barclaycard Platinum Balance Transfer Visa gives you 28 months to pay back your balance and has a transfer fee of 3.45%.
Once the interest free period ends you will pay 24.9% interest on your balance.
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.
If you think that you can pay off your balance faster then you could apply for the Tesco Bank Clubcard Credit Card which has a lower fee.
The card gives you 27 months to pay your balance back but has a much lower fee of 2.95%.
Always use an eligibility calculator before you apply.
Every credit card application you make leaves a mark on your credit file, which can affect your credit score.
The Sun has put together a guide to help you find the best balance transfer cards to apply for to help you pay off debt.
To compare cards use a price comparison website such as MoneySavingExpert’s Cheap Credit Club or Compare the Market.
After you have put your details into an eligibility calculator and it suggests that you are likely to be accepted then you can make a formal application.
To do this you will need to give your email address, name, address and details of your income so the provider can assess whether you are eligible.
You will also need to give details of how much money you want to move to the new card but some providers let you do this after you have been accepted.
If your application is approved then you usually need to transfer your balance within a certain period, which is typically around 60 to 90 days.
Your old balance will be moved and you can start to make payments interest-free on your new card.
You should look to see what options are available to you before you take out a credit card.
For example, new First Direct 1st Account customers can get £175 for switching to the bank and a £250 0% overdraft.
You will need to switch via the current account switch service to get the bonus and will be subject to a credit check.
If you have a very small credit card balance then this could be better than swapping cards.
You should also see if your local council can help.
Some offer interest-free loans to people on low income but the criteria will depend on your circumstances.
Contact your local council for more information.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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