Lifetime Balance Transfers
Lifetime balance transfers are in place for those carrying large chunks of debt, and particularly those who can’t afford to pay it off in the short term future.
To view the latest lifetime balance transfer credit cards please visit our
credit card comparison section
It’s well known that you can radically reduce your interest repayments by account hopping from introductory offer to introductory offer. This is a genuine way to save money but many people simply don’t have the time or energy to deal with the paperwork and phone calls. Or that’s what they think, 0% balance transfers aren’t quite the time consuming monster that many would have us believe.
Regardless, a lifetime balance transfer deal is one that you don’t have to worry about switching over at the end of every introductory period. It’s incredible how many people stray on an extravagantly high APR card for lack of will to find a cheaper service.
In a way, the lifetime balance transfer scheme is designed for these people. By switching your debts on to a low interest credit card, you can forget about dodging sudden rises in the interest. In return for a commitment to pay interest, you’ll be charged less. That’s the basic idea, and it works for both parties involved.
If you have a particularly large sum of debt and it needs paying off over a lengthy period of time, a lifetime balance transfer is perfect for the cause. You’ll be charged the same low rates until the entire debt is cleared.
So how can you be caught out? The most common catch involves additional purchases once you’ve made the balance transfer. While the low interest rates will apply to the debt that you’ve switched across, they won’t be the same for any additional purchases. If you dump your debts on to the single card and then run it up with more shopping expenses, you’ll be charged the full whack in interest.
Instead of paying the interest on your high profile debts - the one that you would deem to be the most costly - many credit card companies adopt an underhand tactic of using your interest to pay off the original interest-free sum. This means that your latest purchases will still be accruing a large amount of interest at the premium rate. The only way you can wipe out that interest is by paying off the rest of your transferred debt.
It’s rare to get a 0% purchases bonus on a lifetime balance transfer, so that makes it extremely important to be careful about any spending you might have to do on the card.
The actual interest rates on the original lifetime balance transfer deals are extremely low. In some cases, you’ll find them lower than the priciest bank loans! This is far better value for your money than a card where you find yourself having to pay a 15% APR after a couple of introductory months.
If you don’t have the motivation to keep on top of your credit card, and you can’t be bothered to keep changing - a lifetime balance transfer may be just right for you.
To view the latest lifetime balance transfer credit cards please visit our
credit card comparison section
