Each year millions of pounds are spent on football players in the January transfer window.
We all know football clubs are owned by some of the richest people in the world and we mere mortals do not have the luxury of being able to spend big this January.
This doesn’t mean you can’t delve into the transfer market though – for those who have overspent this Christmas a balance transfer credit card might be just the right deal for you.
Not sure of your best approach this transfer season?
Don’t worry, the experts at comparison site MoneyGuru.com are here to give you a helping hand on the way to your financial goals.
Having numerous credit cards with debt spread across them can seem like a good idea at the time (that holiday to Marbella was just one credit card away, right?) debt can quickly mount and before you know it, you’re paying a large amount of interest across a number of different cards.
One way to solve this is to move any existing debt you have to a balance transfer card in order to benefit from a lower interest rate and consolidate your debt into one place.
But be careful, all is not simple in the world of balance transfer cards.
Here’s everything you need to know to make sure you come out on top this transfer window:
Keep your eye on the goal
If simplicity is what you’re after then a balance transfer card could be just the ticket. With multiple credit cards it can be hard to keep up with payment dates and what’s owed when. Transferring all your debt into one low-interest credit card really does simplify your financial life.
Got a team-load of debt knocking about?
It’s not just credit card debt that you can transfer. It might be possible to transfer loans for cars, appliances, furniture and other monthly payments.
You’ll have to pay fees
Nothing is ever quite as easy as it seems and fees for balance transfers are commonplace. The fee will usually be a percentage of the amount you are transferring and is definitely a consideration when looking at your options.
Already preparing for next transfer season? It may seem like a good idea to move to a new balance transfer card when your initial rate expires, but don’t be too hasty. Moves like this can be very damaging to your credit score and lenders may now view you as a risk.
Know exactly what you’ve signed up for
A balance transfer card seems very tempting on the face of it, but be careful, the initial rate you are offered won’t last forever.
After a set period your interest rate will jump up significantly, so be careful not to get behind with your payments.
Apply your new financial wisdom
Although you’ll get 0% on the initial transfer, it’s possible that you will be charged for any new purchases you make. If you want a card to spend on some big purchases, look for a different card.
Check out your credit score
We’ve said it once and you’ll bet we’ll be saying it again. As with all the best credit card deals, the best balance transfer cards will only be available to those who have a good credit score. Be wise and make sure you know your credit score and what you might be able to get your hands on.
Remember, there is always help and support out there.
Visit MoneyGuru.com’s wisdom section for tips, ideas and guidance.