Compare Low Interest Credit Cards

Around £6billion a twelvemonth is lost owed to credit card users not understanding
how their credit card works. Too many people are dazzled by the up-to-the-minute deals offered by credit card companies and end up paying more than than they should, simply because of a deficiency of any existent apprehension on how the introductory deal plant that they took advantage of.

Millions of us have got taken advantage of these offers, which include low promotional
rates and the front-runner 1 for the credit card issuers (until it came back
to stalk them) the 0% deals on balance transfers or on both purchases and balance
transfers, but recent research have revealed that those of us who do not understand
the works of these deals, could be costing ourselves £200 extra in
interest payments.

Why am I getting charged interest?

The chief ground for this is that most credit card companies always set the
payments that you make towards the cheapest debt first and with many making
usage of the 0% balance transfer deals, where shift your existent debt to
one lender to another to salvage on interest repayments, the lenders will pay the
balance transfer deal first, as this is the debt that is carrying the lowest
interest rate and any new purchases made on the card will mount up, until the
0% balance transfer deal is over and in the meantime it have mounted up the interest
payments on these new purchases, which will be the criterion APR in which the
balance transfer will revert to when then 0% time period is over.

How makes this happen?

Lets give you an illustration of this to make it a small clearer, for talking sake
state you have got got got got a debt of £3,500 on your credit card and it dwells of a
balance you have transferred from another credit card company to the value of
£2,000, you have made new purchases of £1,000, using the card in
the criterion manner and withdrew cash from ATM’s to the melody of £500,
with you paying back your card the money will be set towards the balance transfer
first and the new purchases and cash backdowns will be taking on the interest
charges right away, which could go forth you paying £200 more than than in interest
repayments.

Earlier in the article I said that most credit card companies work this way,
which intends there are some that make not, most notably included in those who do
not are Nationwide and the HSBC Black card, who revert to paying the most expensive
debt first, leaving the lower APR debt unpaid until such as a clip as when the
more expensive debt is cleared, which is a fairer and less sneakier manner of attributing
someone’s payments to their debts, where as the others are only taking
away the goodness of the deal that they have offered you in the first place,
by giving you in one manus and taking it away from the other.

What can I make to halt paying extra interest?

When dealing with these deals read the small print, as it always do sense
of where you stand up when it come ups to your finances, as knowing where you are
in terms of your repayments will salvage you the cash that you were trying to save
in the first place, though always having a clear balance at the end of each
calendar month is always the ideal scenario, but as we all cognize life and our finances
are not always that simple.

Some Contacts:
Nationwide - http://www.nationwide.co.uk
HSBC - http://www.hsbc.co.uk