Cash point

The fees on balance transfer cards have dropped to the lowest level for over a decade.

Research from financial data firm Moneyfacts shows the average balance transfer fee is 2.03%, down from 2.11% in September and 2.29% a year ago.

It now costs an average £30.45 to transfer a £1,500 balance, compared to £34.35 last December.

At the same time, card firms are reducing the length of the term on 0% cards. You were able to get a 42-month balance transfer card, but the current best is 38 months. If you’re looking to clear debt more cheaply it may be wise to move quickly to bag a lower fee and the longest time to spread the cost.

The current best deals include Barclaycard’s Platinum 38-month card with 1.4% fee, MBNA’s Platinum 37-months with 1.89% fee and Sainsbury’s Bank 37-month deal with 1.98% fee (minimum £3).

Lloyds Bank offers a shorter 33 months but with a cheaper 0.57% fee – £8.55 to transfer £1,500. Make sure you make repayments on time each month or deals are stopped immediately and you’ll get slapped with interest over 18%.