Fall in 0% balance transfer deals available

According to recent report there has been a marked reduction in the number of 0% balance transfer credit card deals available on the market, with an increase in the number of people struggling to get a good 0% deal to help them to save money on their credit card debt. More and more people are finding it harder to get this type of credit card as credit conditions in the market continue to worsen.

Having looked at the reduction in 0% balance transfer deals on the market, one industry official said: ‘These figures should send a clear message to borrowers that the credit card merry-go-round is grinding to a halt. In the coming months, it’s going to become increasingly difficult to refinance your debt at 0% interest.’

He also said: ‘This trend away from extended balance transfer periods underlies a shift in the industry which is increasingly cautious about the people it lends to and is far more interested in the profitability of its customers. A year ago there were dozens of cards with overall APRs of little more than 10%, but today the most competitive cards offer rates of 16% or more.’

In October of last year around 82 percent of credit card providers offered 0% balance transfer credit cards, giving consumers plenty of choice, but recent figures revealed that this has now fallen to just 75 percent of providers.