TotallyMoney.com has released the findings of their latest research which claims that 25% of the total number of people who went after cheap balance-transfer credit cards, have missed at least one monthly payment in the past year. In most of these cases, they have to pay an interest fee of around 20% per year, in addition to their already debts.
The research was conducted after Barclaycard announced its whipping balance transfer card for 30 months which implies anyone can transfer their debts from another card without paying any interest until 2016. However, such credit cards always come with a catch, and the Barclaycard is no exception to the rule. Thus, borrows have to make a minimum deposit each month, or else they risk having to pay the so-called purchase annual percentage rate on their account, meaning around 18%.
As a result, trustworthy customers can receive a fee reduction of more than ₤700 on a total average debt transferred of ₤2,100, until 2016, meaning more than ₤200 per year.
However, as previously mentioned, the Barclaycard has a few claims of its own, which ought to be taken into consideration by all customers. Here are some:
Do not miss payment, delay your payment, or exceed your credit card limit unless you want your promotional rates to be discontinued.
Decide upon a monthly deposit you are willing to make, but be sure the sum covers at least the minimum amount of money you ought to pay each month.
Avoid using your balance-transfer card for new online or offline purchases. This way you keep your account in order, and make sure you finish your debts in a suitable time.
Bear in mind that the Barclaycard comes with an initial fee of 2.9% of the total amount of money transferred.
By the end of the promotional rate period, the annual interest fees will most likely raise up to 20%, thus you will not be able to turn to a new promotional deal.