Balance transfer credit cards ‘require prudent approach’
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www.moneysupermarket.com Tuesday, 12 Jan 2010, 2:53pm 
Britons must use a sensible repayment strategy if they take out a balance transfer credit card, according to one financial expert.
Consumers contemplating taking out a balance transfer credit card have been advised to adopt this approach with caution, the BBC reports.
With a range of 0% credit card deals currently appearing on the market, many Britons will be looking to shift their balances in order to reduce their immediate financial pressures.
Kevin Boon, counselling team leader at the Consumer Credit Counselling Service, admitted that this strategy can prove beneficial, particularly for Britons who have racked up credit card debts over the recent Christmas period.
However, he also warned that rates are likely to rise after the introductory period on 0% balance transfer credit cards has expired, meaning sensible money management is absolutely crucial.
“If you did go down this route you would have to be really strict with yourself and not use the card in any other way,” he told the news provider.
“Another thing to take into account is the interest rate after the promotional period has ended, as this normally increases to a much higher rate.”
Mr Boon also offered an alternative strategy for consumers whose credit scores are not positive enough to warrant being accepted for a 0% balance transfer credit card.
He explained that people with multiple accounts should use any surplus in their budget to pay off the highest-interest offerings as quickly as possible.
“If you want to clear the debts as soon as possible you need to look at maximising your surplus income,” he added.
A recent report by Santander Cards suggested that Britons will transfer a combined £3.2 billion onto new credit cards in the first three months of 2010.
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