Balance transfer deals ‘disappear’

Posted 2008-03-5

The number of firms offering zero per cent balance transfer deals has been scaled back dramatically, new research has suggested. Whereas some 200 deals lasting at least ten months were on the market this time last year, that figure has now dropped to a mere 24 - with the credit crunch widely being blamed for their decline. Financial website Fool.co.uk said that the products were being offered by a cluster of just nine companies, severely restricting customer choice at a time when consumers are being urged to shop around for savings. David Kuo, head of personal finance at Fool, urged people to exercise caution as he said many deals profess to offering zero per cent transfers but actually entail hidden drawbacks. "Consumers who intend to use zero per cent balance transfer cards need to be aware that while there may be a plethora of cards, there are effectively only nine genuine cards that will do what they say on the tin," Mr Kuo said. He noted that a three per cent transfer fee on a six-month deal is in fact the equivalent of 10.7 per cent AER.

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