What one thing would you tell the nation? 31 October 2005 at 12:15PM edited 30 November -1 at 1:00AM in Credit Cards 26 replies 4.2K views

MSE_Martin

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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romeara

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

gkerr4

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??

dc

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:

paultw5

What one thing would you tell the nation ?

To remorgage whenever your current deal expires,

Rafter

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.

Robert_Sterling_3

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.

blacksta

stay away from credit.

grumbler

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?

blacksta

Change of tune

only apply for a mortgage

dc

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: