What one thing would you tell the nation?

edited 30 November -1 at 1:00AM in Credit Cards
26 replies 4.2K views
MSE_MartinMSE_Martin MoneySaving Expert
8.3K Posts
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edited 30 November -1 at 1:00AM in Credit Cards
I was asked this on the radio on Friday and my immediate response was "about life of balance cards". They let you shift debts from other cards at a special low rate.

Most importantly they're not short term deals, the cheap rate lasts until all the debt you've moved is repaid. For most people this is much easier than shifting 0% to 0%.

The only rule... never,ever,ever,ever spend on the card - do that and you allow providers to claw their cash back.

For more info read: Best Balance Transfers
Best Life of Balance Cards (4.9%): Amex Platinum*, British Airways Amex*
Click reply to discuss.






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Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
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Replies

  • Thanks,

    I agree. I applied for the British Airways amex card that has a life of balance rate of 4.9%. It's recommended under stable relationships on your site. My only concern is that the info about balance transfer fees is vague at best. It is not mentioned in the T's and C's. Moneysupermarket.com say it is free, however the Amex call centre operators are saying it is 2%. On a £10k transfer that is not a trivial amout.

    Cheers,
    rob
  • gkerr4gkerr4 Forumite
    495 Posts
    The one thing I would "tell the nation" - is to read the small print and the T's & C's of EVERYTHING they sign - financial or otherwise!!!

    How many times have we read on the board posting by people who have got into a product they didn't fully understand, or made a move based on (lacking) information they could have had if they had read the small print??
  • dcdc Forumite
    2.5K Posts
    IMHO they are much better than a personal loan because interest reduces as debt is paid off, thus monthly payments reduce.

    Whereas with a loan the interest is fixed, added to the total, then divided by the time to pay, giving fixed payments.

    My car is on a 2.9% LOB, much criticised at the time, by stoozers :beer: .

    This option is becoming more attractive as BT fees increase, and 0% offers get harder to obtain the more you have had.


    SOF

    :money:
    ac's lovechild
  • paultw5paultw5 Forumite
    146 Posts
    What one thing would you tell the nation ?

    To remorgage whenever your current deal expires,
  • RafterRafter Forumite
    3.8K Posts
    To only borrow what you can afford to pay back over a reasonable length of time.

    So.......

    Don't go on a spending spree for a new wardrobe on a credit card and then end up paying for it over the next 5 years long after the clothes have gone out of fashion

    Don't take out an unsecured loan for a second hand car over 10 years when the car will be on the scrapheap within 5

    Don't take out a secured loan over 20 years to put in a new kitchen, when the last one only lasted 10.

    Don't take out an interest only mortgage and just rely on house prices increasing to fund retirement.

    R.
    Smile :), it makes people wonder what you have been up to.
  • Robert_Sterling_3Robert_Sterling_3 Forumite
    7.1K Posts
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    What one thing would you tell the nation ...

    .... that when a savings account paying 5% includes a BONUS this does not mean that you get any extra. It is a warning that in due course you will get less than 5% interest. In fact the bigger the BONUS the less you will get get when the bonus period ends.
    ...............................I have put my clock back....... Kcolc ym
  • blackstablacksta Forumite
    919 Posts
    stay away from credit.
    I owe £3233 @ 0%
  • grumblergrumbler Forumite
    54.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
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    blacksta wrote:
    stay away from credit.
    1. Can YOU afford to buy a house without mortgage(=credit)?:rolleyes:
    2. Your advice is for weak-willed people. Do you think that the whole NATION is weak-willed?
    We are born naked, wet and hungry...Then things get worse. :(

    .withdrawal, NOT withdrawel ..bear with me, NOT bare with me
    .definitely, NOT definately ......separate, NOT seperate
    should have, NOT should of
    .....guaranteed, NOT guarenteed
  • blackstablacksta Forumite
    919 Posts
    Change of tune

    only apply for a mortgage
    I owe £3233 @ 0%
  • dcdc Forumite
    2.5K Posts
    My national advice?

    Visit MSE.com before you borrow or spend a penny ;) , if that advice is too late then still visit, ask the question and your problem will be so much nearer a solution.


    No creep, just fact. :beer:


    SOF
    :money:
    ac's lovechild
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