Credit crunch spells end of 0% balance deals

Posted 2008-04-16

Zero per cent balance transfers "are going to be very hard to come by, if not non-existent," according to the National Debtline.

A spokesperson for the national telephone helpline has said that the knock-on effects of the credit crunch will also be felt on other aspects of peoples personal finances, with some people choosing to stop paying their mortgage to counterbalance the problem.

Beccy Boden-Wilks, a debt adviser and spokesperson for National Debtline, said: "One of the major effects of the credit crunch is that people cant manage their large amount of debt as cheaply as they could before; this is having a knock-on effect, which is why at National Debtline were seeing increases in mortgage arrears."

She added: "If people cant afford their non-priority debts anymore sometimes theyll stop paying their mortgage as well. Its definitely having a knock-on effect."

According to recent research by Sainsburys Finance, around 716,600 people will try to transfer £1.1 billion a month between credit cards this year.

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