Here's the lowdown on two great credit cards which allow you to pay off your debts at your pace.
With most credit cards charging around 16% APR, even your best efforts to pay back what you owe might feel fruitless.
This is where balance transfers step in as saviours!
The Problem With 0%
0% deals are a Foolish favourite, as they offer a rest from interest charges -- and therefore a real chance to diminish your debt.
But even the best 0% balance transfer deals can only offer a brief respite from the plague of paying interest. (The best cards offer interest-free periods on your debt between 12 and 15 months.)
Once the promotional period on your 0% card is over, and unless you've paid off the entire balance, you'll need a new card to shift your remaining debt to. Or you'll be back on the 16% slope!
And sadly, in this period of economic uncertainty, there's no way to know what new 0% deals will be available when that time comes... Or whether or not you'll manage to bag one.
Playing It Safe -- And Smart!
This is one of the reasons why I love lifetime balance transfer credit cards.
With a lifetime balance transfer deal, there's no need to keep shifting your debt from one place to another. You can move your expensive credit card debt onto a new, low interest rate -- which is fixed until the whole balance is paid off.
These cards are great for anyone with debts that could take a while to repay. With them, there's no risk that you'll find yourself stuck with a hefty remaining balance at a high interest rate.
Once you've made the move, that's it -- you can set up a direct debit for regular repayments, put the card in a drawer and watch your balance start to shrink.
Brilliant Lifetime Balance Transfers
Two new lifetime balance transfer cards have recently come onto the market -- and, in my opinion, they're brilliant.
Both are from MBNA, and have rapidly become best buys. Here's why...
1. The MBNA Platinum Plus Rate For Life card offers a lovely, low interest rate of 4.9%, with a 2% handling fee. That's the lowest balance transfer interest rate on the market right now.
2. Its ‘sister' card, the other MBNA Platinum Plus Rate For Life card offers a slightly higher balance transfer rate of 5.9% -- but comes with no handling fee. That's currently quite rare in the credit card market.
If you're considering a lifetime balance transfer, one of these clever cards should suit you.
Things To Remember
As with most balance transfer offers, both these cards require that you move your debt to them within 60 days of your account opening date.
Also, it's important that you always make payments to your card on time -- MBNA reserve the right to revoke low interest rates for customers who break the rules.
Annoyingly, MBNA doesn't accept balance transfers from other companies within its stable -- so you won't be able to transfer other MBNA, Virgin or Alliance & Leicester balances to either of these cards.
Finally, don't forget that you should never spend on a card after transferring a balance to it -- otherwise you'll be hit by negative repayment hierarchy.
As long as you bear these rules in mind, one of these cards could be the key to clawing back control of your credit card bills.
With a brilliant balance transfer sorted, you'll be all set for a better, brighter summer!
Compare credit cards at Fool.co.uk.
Editor's note on July 9th: The 5.9% MBNA Platinum Plus Rate For Life card is no longer available.
