IN­TER­EST-FREE TRANS­FER PRO­GRAMS

Sunday Mail - Body and Soul - - FRONT PAGE -

If you have an ex­ist­ing credit card debt, tak­ing ad­van­tage of one of the many in­ter­est-free trans­fer of­fers could be a good way to get a han­dle on it. How­ever, even though this may feel like a pos­i­tive step to­wards debt-free living, you need to have a plan as this op­tion isn’t with­out its pit­falls.

Some providers that of­fer in­ter­est-free trans­fers will im­me­di­ately start charg­ing in­ter­est on new pur­chases, rather than pro­vid­ing an in­ter­est-free pe­riod on th­ese trans­ac­tions as well. Worse still, any re­pay­ment you make will ini­tially re­duce the in­ter­est-free bal­ance, al­low­ing the debt on new pur­chases to grow. This could re­sult in larger in­ter­est bills than be­fore the trans­fer.

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