Five ways to get rid of your credit card debt
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1. If you have a history of late payments or a lot of existing debt then you may find you're turned down for a 0% balance transfer card, so check your credit record before you apply. The main rating agencies include, Experian, Equifax or CallCredit.
2. If you have been refused a credit card, do not simply apply elsewhere as this could damage your credit rating further. You can improve your credit rating by ensuring you're on the electoral roll, reducing your level of debt elsewhere and making sure there are no mistakes on your report.
3. Most 0% cards require you to pay a balance transfer fee, often around the 3% mark. In some cases it might be worth looking for a credit card with a low rate of interest and no balance transfer fee. Although you will be charged interest, it could be worth it in the long run especially if you think you'll need a while to pay off the balance.
4. Never use a 0% balance transfer card for new spending as the majority of credit card providers use your monthly payments to pay off the cheapest balances (that is, your 0% balance) first – leaving the more expensive debt to rack up interest.
5. Make sure you clear your balance within the interest-free period, or you face paying interest of around 18% APR. Also, it's vital you don't miss any payments - if you do it will often render any 0% void and you will start paying interest on your debt.
Best Credit Card
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HSBC |
0% for 23 months(3.3% fee) | |
Barclaycard |
0% for 22 months(2.9% fee) | |
Halifax |
0% for 22 months(3.5% fee) | |
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Very important things to consider. The good thing about having say a 12 month interest free period it gives a set goal to try and id yourself of the debt.