Beware balance transfer credit card trap says survey

Balance transfer credit card users are paying on average ten per cent above the best rates available, to them claims a new survey.

Around 75 per cent of the credit card debt in the UK is subject to interest payments and many people find it more convenient to pay rather than chase zero per cent deals.

Excluding zero per cent offers, the market holds a massive variation in rates.

Moneyfacts says that the new Barclaycard FlexiRate credit card is the best balance transfer credit card for those who are tired of regularly switching providers.

"The new deal, tops the best buy charts offering 4.9 per cent PA until the balance is cleared for any balances under £5,000," said Andy Britchford of Moneyfacts.

"But beware, as with many cards, you will be required to pay a balance transfer fee, in this case 2.50 per cent. So on a balance of £5,000 this would cost you £125.

"However, with interest rates predicted by some, to rise later this year, it may well be worth paying the fee in the knowledge that you won't be charged any more than 4.9 per cent until your card balance is completely cleared.

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