(05/01/2009) Due to be busiest Balance Transfer Day of 2009 ...and maybe the last?

Credit card applications set to peak as cash-strapped consumers deal with Christmas debt hangover

Monday 5 January 2009 is predicted to be the busiest day of the year for Balance Transfer credit card applications according to research by leading online credit card and personal finance marketplace, Compareandsave.com.

Based on figures from the past three years, over twice as many people will search online for 'Balance Transfers' on Monday 5 January than at any other time of the year. That's 6,257 'Balance Transfer' searches in just one day compared to a daily average of 2,922.

With thousands looking to transfer their balance, Brad King, managing director at Compareandsave.com offers advice:

"Christmas is not a time renowned for sensible financial planning and as a result many consumers start 2009 with a nasty and often unexpected debt hangover. In an attempt to take charge and manage their finances many look for a Balance Transfer credit card. Given that this year is likely to be financially tighter than most, finding the right card has never been so important.

"The credit card market place has changed so much over the past couple of years. The recent trend of issuers removing their 0% balance transfer offers is likely to continue, however a number of big issuers will still run their 0% Balance Transfer credit cards in January, for example, Barclaycard, MBNA and Virgin. With dramatic changes in the credit card market place and the way consumers manage their money this may be the last Balance Transfer Day that we see.

"Choosing a credit card is no longer a case of simply picking a card with the longest 0% offer. Consumers need to consider a range of variables and base their Balance Transfer card choice on their individual situation. By comparing the best deals there are significant savings to be made.

"Depending on an individual's situation, a 0% deal is not always the best option.  We have seen a trend emerging of card issuers adding an administration fees ranging from 1-3%, on 0% offers. This added expense can, depending on the length of time needed to pay off debt, out way the money that a 0% card would save.

"Consumers should also be aware that Balance Transfer offers can be withdrawn if their credit limit is exceeded or a payment is missed. And as it can sometimes take longer to pay off debts than first envisaged, before applying, everyone should check what APR rate their card will change to once the 0% offer has expired."

Compareandsave.com offer advice on which credit card to opt for in 2009:

 

TYPE OF CARD	WHEN SHOULD I APPLY?
Reward cards	If you pay your balance off in full at the end of every month
Balance Transfer cards	If you have trouble servicing your debts in full
0% Purchase cards	If you are planning large one-off purchase which can be paid off in full before the offer expires
Low rate credit cards	If you are planning large purchases between £0-£8,000
Credit Building cards	If you have no credit history or are recovering from bad credit history

 -Ends -

For further information please contact the team at BOTTLE PR on 01865 882988 or email louisashutie@bottlepr.co.uk or bridgettaylor@bottlepr.co.uk

Notes to Editors

Launched in 2005, compareandsave.com is a leading online credit card marketplace, where consumers can search, compare and select the best credit cards and personal finance products for their needs.

Every year, more than 5 million UK consumers visit compareandsave.com to compare personal finance products.

The free online resource, compareandsave.com, evaluates hundreds of credit card and savings offers by category, includes the latest best buys on products ranging from credit cards, loans and savings accounts through to broadband. It also provides consumers with the tools to make the best possible financial decision including loan, savings, mortgage and salary calculators.
 

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