Slash Credit Card Payments with a Tactical Balance Transfer

There is more than a little irony surrounding the fact that we Britons are absolutely up to our eyeballs in consumer debt, even after all of the trouble that our credit addiction caused us back in 2008. Undoubtedly the credit crunch frightened the mainstream lenders into becoming much more cautious about dishing out credit to anybody but those with the whitest of white credit scores, but we consumers have still managed to saddle ourselves with record levels of consumer debt, which exceeds that of even pre-crash levels. The difference now is that a majority of us are simply carrying a greater degree of higher-interest debt, particularly in the form of credit cards, which has made climbing out of debt a much more slippery and tricky business.

The credit card shuffle

Many savvy consumers who are saddled with credit card debt have become well versed in the art of regularly transferring their debt from card to card, in a little dance which has been coined the credit card shuffle. By transferring your existing credit card debt to a new one, via a balance transfer, it is possible to drastically speed up the repayment of your debts, seeing as potentially all of your repayments will be paid into clearing your debt directly, rather than the interest. For those with smaller levels of debt, a low interest or 0% interest balance transfer card could allow you to quickly clear your debt and get back into the black, whilst those with much larger, long-term credit card debts will be able to spend the hundreds that they may have been spending on interest payments each month on chipping away at their debt instead.

Balance transfer options will vary between cards and applicants

There are a number of different options available to consumers, although access to balance transfer credit cards may vary depending on the credit score, salary, and debt level of the applicant. Some balance transfer offers will allow consumers to switch over their debt with no transfer fees, whilst for others you will incur a charge of around 2% of the debt to be transferred for example. It will also vary between cards how long your interest free period lasts for, with some cards offering the consumer a 0% interest 6 month free period whilst others may offer up to 18 months. It should be mentioned however that it is imperative that you make at least the minimum monthly payments on your new credit card because if you miss a payment, you will lose your 0% interest deal and get a charge for good measure.

Be careful not to mistime your moves!

If used carefully, credit cards can be a fantastic method of borrowing money at very low interest or even 0% interest, with no fees and no fuss. However if you get it wrong, you could quickly find yourself with burned fingers and carrying a lot of expensive debt around your neck. As with any form of dance, the credit card shuffle is one which will require you to pay attention to the small details. Be sure to make a note on your calendar of which month your interest free balance transfer deal is set to end, and set your repayment plans around this accordingly.

Avoiding Fees When Shopping Online

Online shopping is something that most of us do, but as some of us will attest to, it's not without its risks and pitfalls. Shopping on the world wide web remains one of the most convenient ways of getting what you want and getting a good deal at the same time, although until the technology exists to allow us to print out what we've purchased on a 3D printer, we still have to wait until the postman (or post woman!) has delivered the item to us. Of course, digital purchases such as films, eBooks and music are available for you to enjoy instantly.

Although shopping online can be one of the cheapest ways to buy what you want and need, there are still small ways in which it could sting your bank account for more than you realise. Shopping around and comparing prices on the world wide web is much easier than doing so in real life. Not only can you visit numerous shops at once but you can also enjoy the perks of comparison websites and voucher code sites which can instantly allow you to identify the cheapest possible deal. It's not the cost of the items you want to buy that can add on the hidden fees and charges but the other costs involved that you need to watch out for.

Payment Method Fees

One of the more common areas where people get stung for higher amounts than they anticipated when shopping online is additional costs involved in how you pay. You would think that any payment method would simply be able to be taken without issue, as everything is online and no special equipment is required such as a card reader, for instance. Although things done online can be very efficient and cheap for the company involved, sometimes charges are levied by the payment provider to the business. This in turn is often passed onto the consumer. You may have experienced this by having to pay an extra £1.50 for using a credit card or PayPal. One way to avoid this is to have a number of payment options at your disposal and always stay below budget just in case.

Postage Fees

Paying to have your item delivered is something we all expect to have to do, but some retailers online will offer free postage, so be sure to take this into account when comparing prices. Some online shops will give you an option to pick different postage options. If you're happy to wait a little longer for your item(s) then choosing the cheapest option could really help to keep the costs low.

Booking Fees

When buying tickets online for things like concerts and travel you could find yourself caught out by a booking fee or two. Some sites will have higher booking fees than others, so do your research before committing to buy anything just in case you could save the money. For instance, when buying train tickets, thetrainline.com issues a £1.50 booking fee, but sites like redspottedhanky.com do not.