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Dramatic fall in balance transfer card deals over recent years

October 8, 2009 by admin  
Filed under News, News-Credit-Cards

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Over recent years many consumers have benefited from using balance transfer credit cards, as these cards have allowed them to save money on their credit card debt interest.

However, since the onset of the global credit crunch many changes have affected the credit card and financial sector, and according to one recent report the number of credit cards offering balance transfer facilities has plummeted further as a result of the credit crunch and financial crisis.

The report claims that over the past four years the number of balance transfer credit cards that are available in the UK has fallen by around 50 percent.

Figures suggest that there were around ninety providers offering balance transfer cards just a few years ago in 2005. However, these days this figure has fallen to just over fifty providers offering these cards reflecting a fall of nearly 50 percent.

Whilst the number of balance transfer credit card deals is said to have fallen the good news is that the interest free periods offered on the balance transfer deals that are still around are for a lot longer than they used to be.

This means that those able to get their hands on a balance transfer credit card are often able to enjoy longer periods within which to repay the transferred balance without being charged any interest on the debt.

The figures suggest that in 2005 the average interest free period offered on these cards was just over six months but this has now increased to nearly ten months as an average interest free period.

One official said: “With bad debts causing a real headache for most credit card lenders, it’s no surprise to see that the number of interest free balance transfer deals has started to decline. It’s not just the total number of 0% balance transfer cards that have fallen away, but we’ve also seen the number of longer term offers chopped too. Whilst there are still 0% deals to be found, lenders have become ultra cautious and only the very best customers will now have a chance of being accepted for these cards.”

Tags: balance transfers, United Kingdom, period, balance transfer credit cards, Business Finance, interest, credit card balance transfers

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