Research has showed that credit card providers are waiving balance transfer fees but charging higher interest rates.

According to financial website MoneyExpert.com, the number of credit card providers that are offering credit card holders the chance to transfer outstanding debt from another card without having to pay a fee to do so has risen by nearly 20pc to 69 during the past year.

Average interest rate charged on the balance

But the average interest rate charged on the balance for cards that do not charge a transfer fee is shifted over 7.03pc, as compared with 4.26pc for those that do charge one.

Although you can find some providers, such as Northern Bank, by which no fee is charged but still offer 0pc deals for a limited time, others charge as much as 15.9pc in interest on the money transferred.

Zero Percent interest on balance transfers

There has also a fall in the number of cards offering 0 % interest on balance transfers, dropping to 149 from 171 during the past 12 months, while we have seen a drop of 25pc in the number of providers offering 0pc interest deals for more than 12 months.

Related Articles

• Correct Procedure to Apply for Debt Consolidation Loan
  Consumers can settle their debts by using personal loans as a measure of debt consolidation. After taking personal loan, the credit score falls, but it gets improved after fulfilling the obligation of a person towards his debt....
• Credit Counseling as Debt Solution
  If you are in a bad financial situation and you need some help then you should consider getting credit counseling services from a reputable credit counseling company. Credit counseling can reduce or eliminate your debt related problems from your life....
• Use Credit Card Balance Transfer For Debt Consolidation
  If you are having various credit card debts and you cannot pay off them, then you can transfer blanaces from these credit card accounts into a new one. It will help you to get your monthly payments reduced and you will be saved from paying off more than o...
• Improve Your Credit Score with Debt Consolidation
  Credit repair debt consolidation loan is a good option to clear all your outstanding balances and to get your credit score into good shape. You should not forget that it can only stabilize your existing financial situation and to achieve constant financia...
• 10 Commandments of Debt Consolidation
  Borrowers having huge burden of debts find ways to get out of it. Some of them become successful, while others happen to get into even worse situation by doing mistakes. Borrowers should be aware of good and bad steps so they can achieve firm financial st...