Newspaper article The Evening Standard (London, England)

Switch to a 0% Credit Card but Make Sure You Pay It Off

Newspaper article The Evening Standard (London, England)

Switch to a 0% Credit Card but Make Sure You Pay It Off

Article excerpt

Byline: Simon Read

ALMOST two-thirds of Londoners now own a credit card, and many claim to do so because of the benefits.

One in three people who have turned to plastic say they chose a credit card based on the rewards it offers, according to Halifax. Meanwhile, 17% say they were attracted by an introductory offer, such as 0% on balance transfers.

It is easy to presume that anyone planning to pay for Christmas on plastic is missing a trick by not taking advantage of the many 0% purchase deals currently on the market.

Sainsbury's reckons that around 15% of shoppers end up with credit card interest charges by not signing up for a 0% deal.

It reckons that anyone using a card with the market-average APR of 18.9% would spend an extra PS268.36 paying back a PS2000 purchase over 18 months, compared with a 0% card.

While that sounds like a strong argument for rushing to take out a card, bear in mind that if you don't pay off the balance within the 0% interest-free period, as many fail to do, you will still be landed with interest charges. …

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