Lifetime balance transfers
August 20, 2007 by admin
Filed under News, News-Loans
One big advantage that a lifetime balance transfer has over a consolidation loan is that it offers far greater flexibility when it comes to payments, a leading bank said today.
With credit card users paying hundreds of millions of pounds worth of penalties last year, looking to avoid such fees ought to be a big priority among British consumers.
“You know exactly what you are going to pay and it is a guaranteed balance,”
Donald MacLeod, head of credit cards at Sainsbury’s Bank, said.
“[It] is probably one of the most straightforward ways of using a credit card: you transfer the balance [and] you know what you’re going to get,” he added.
“One of the big benefits of the lifetime balance offer compared to loans is that there are no penalties so you’ve got complete flexibility of payment - so as long you give a payment you can pay as much as you want or as little as you want, whereas with a consolidation loan your payments are set in stone from the start.”
Mr MacLeod also said that, far from encouraging debt, the flexibility of payment offered by balance transfers made them a good way of restructuring existing debt.
