Here, we look at what happens when your introductory period ends and things to consider to help you understand your options.
Balance transfer credit cards typically come with an interest-free period. Once the promotional period ends, the interest rate will usually revert to the purchase interest rate.
You’re likely to be charged more interest on any existing debt, or future purchases.
Most people who apply for a 0% balance transfer credit card do so to avoid paying interest on their debt.
If you're coming to the end of your 0% balance transfer period and you haven't cleared your debt, here are a few things to consider.
Once the 0% or reduced-interest period is over, consider the:
Our credit card repayment calculator can help you work out how long it could take you to repay your balance and how much interest you’d pay.
Based on the above and how you plan to use the balance transfer card – is it still offering you a good deal? If not, shop around to see if there’s another type of card that could suit you.
You may benefit from a credit card with:
If you still have a substantial amount of debt left on the card, you may be more interested in another balance transfer.
Two things to think about:
It’s important to consider this option carefully. While it’s great to reduce the amount of interest you pay, you don’t want to just keep transferring the debt from one card to another.
You may be faced with the same situation once more and should take steps to clear the remaining debt before the introductory period ends. Applying for too many balance transfer credit cards can also negatively impact your credit score.
If you have debts in various places, including credit cards and loans – a debt consolidation loan could be an option.
It merges your debts together, potentially saving you money and making it easier to manage with a single monthly repayment.
Explore: What is debt consolidation?
If you need a bit of help getting your finances back on track, we have trained specialists who can help.
If you’ve managed to pay off the entire balance – good work, you’ve achieved your goal.
If so, review the terms of your balance transfer credit card. You may find another type of credit card is more suitable.
If you no longer need a balance transfer credit card, you could close the card to reduce any temptation to spend. Just try to avoid closing lots of credit cards in a short space of time, as this can affect your credit score.
If you’ve cleared your debt, consider using the money you’ve set aside in your budget for credit card repayments to build your savings.
For example, if you’re used to putting £200 aside each month to repay your credit card – you could move it into a savings account instead. This way, you’d save £2,400 in 12 months, plus any other interest the savings account may accrue.
Explore: How to save money
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