SWITCH TO A ZERO PER CENT CREDIT CARD

IF you are paying interest on your credit card because you have an uncleared balance it is worth trying to switch to a zero per cent deal.

The best deals mean you can borrow interest-free for more than three years. Some cards will charge a fee for moving over your existing balance from another card issuer so it is vital to read the small print.

James Daley is managing director of Fairer Finance. He says: ‘It is important to make sure you are not paying any unnecessary interest on your debt. Transferring to a zero per cent credit card will give you extra financial breathing space and ensure every penny you pay back is reducing your debt.’

Santander bank has a 39-month interest-free deal with no balance transfer charge. But it does apply a monthly £1 fee to hold the card. Lloyds Banking Group and Sainsbury’s Bank have 33-month interest-free deals but with balance transfer charges of 0.57 per cent and 0.59 per cent respectively.