'Never spend' on balance transfer credit cards
25 January 2010 09:47:42
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| Britons advised against new spending on balance transfer credit cards. |
Writing for the Sun, 'Dragon's Den' star Shaf Rasul noted that securing a 0% credit card could be an ideal way to reduce the impact of an expensive Christmas period.
However, he explained that the strategy is only effective if consumers avoid purchases on their new card and attempt to make more than the minimum repayment every month.
He wrote in the newspaper: "Of course, credit cards are a useful tool and many offer extra benefits such as reward points, but don't be seduced into debt by 'free' money.
"The golden rule with balance transfers is never spend money on this card. The idea is that you buy yourself some breathing space and reduce your debt, not go on another spending spree."
Mr Rasul also advised Britons with more serious credit card debts to seek assistance from independent bodies such as the National Debtline and the Consumer Credit Counselling Service (CCCS).
Earlier this month, Kevin Boon, counselling team leader at the CCCS, told the BBC that consumers must pay off their balances on 0% credit cards before the introductory rate expires.
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