Switch Cards to Save Money

Slash interest payments

Once you’re on top of your payments you can look at ways to start making inroads into your credit card debt. Like most debts and loans, making only the minimum payment will take years to clear the loan or the debt.

To avoid getting stuck in this rut you can transfer the debt from one card to another.

To do this you will need to be very, very careful and attentive. If you lose track of things you’ll end up paying more.

0% on balance transfer credit cards

0% credit cards let you move an existing debt from one card to another card.

This can ensure you pay as little interest as possible, freeing up your cash to clear your credit card debt rather than paying interest. If you transfer your credit card debt from card A to card B, card B has paid off the debt you had with card A, so you now owe card B the money. And while the 0% deal lasts you will not pay interest on the debt but will actually be paying the debt.

Stall your credit card debt

These cards can be a good way to ‘stall’ your debt, allowing you to manage your cash and clear more pressing debts.

If special rates aren't available, shift the money to cards with the cheaper standard rates.

A couple of percent interest less can make a big difference to the amount you pay.

You must never use the card to pay for anything or buy anything and always make sure you make payments on time.

Missing a single payment can lead to the 0% deal being withdrawn, incur more fees and damage your credit rating.

Lock the card away until it’s cleared.

If you’re struggling to make a payment deadline take a look at fast payday loan rates, borrowing a little could save you a lot.

Once you switch credit cards, keep on switching

Credit card companies are under no obligation to remind you of when the free credit period ends, and when it does, the interest rate can be as high as 20% to 30% plus.

Make sure you’ve made a note of when the 0% offer ends, and when that time comes, switch cards again.

If you can't cover existing debts then changing credit cards may not be for you. Find free debt help from agencies like Citizens Advice or Consumer Credit Counselling Service.

Also in this section

• Escape credit card debt

• Cut credit card debt

• Claim your money back