25% of UK Customers Have Missed a Payment on Balance Transfers

by Sean Bryant on December 10, 2013

Totally Money, the credit comparison experts, have been reflecting on Barclaycard’s unveiling of a new 30 month Platinum balance transfer deal. Their research has revealed that 25% of people in the UK who have had a similar long term credit deal have missed at least one monthly repayment which has meant they lose the benefits of the arrangement as it is breaching the terms and conditions. This can prove very costly, as this may mean losing the 0% balance transfer deal and having it replaced with the default APR (which is on average 18%).

It isn’t just losing the benefits of such an arrangement which can be costly. In addition to this, missing a repayment can have tremendously adverse effects on a credit rating, which can make life very difficult.

Will Becker is the founder and CEO of Totally Money and he has pontificated at length on the subject. He has quoted as saying: “It’s great to see the credit card market rife with competitive new deals for consumers. Barclaycard’s new 30 month Platinum 0% balance transfer deal is the longest we’ve ever seen and can save people with the average balance transfer of £2,167 an incredible £715 in interest over the term. However, consumers must ensure they make at least the minimum repayment on time every month or they risk being forced to pay the purchase APR on their balance which is on average around 18%. This is the case with the majority of balance transfer deals.”

Mr Becker, went on to comment that consumers are facing constant rising costs in all areas of their lives including: fuel, energy prices and food, reducing their costs with things such as credit is more important than ever. This new deal set by Barclays is one that offers the biggest interest in saving that has ever been available in the UK and can even save a massive £715.

As these deals are getting more and more competitive, there has rarely been a better time to be a consumer in this particular market.

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Sean Bryant

Sean Bryant created OneSmartDollar.com in 2011 to help pass along his knowledge of finance and economics to others. After graduating from the University of Iowa with a degree in economics he worked as a construction superintendent before jumping into the world of finance. Sean has worked on the trade desk for a commodities brokerage firm, he was a project manager for an investment research company and was a CDO analyst at a big bank. That being said he brings a good understanding of the finance field to the One Smart Dollar community. When not working Sean and he wife are avid world travelers. He enjoys spending time with his daughter Colette and dog Charlie.

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