Play your cards right

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  • | by Kristian Dando

If your credit card is something which bubbles away in the background racking up interest, you could be paying far more on interest payments than you might have to.

According to Moneyfacts, the current average rate of interest is around 19 per cent, which means that if you have credit card debt of £1,500, you’ll pay an extra £283 per year on interest payments.

Taking a more proactive approach to your credit card debt can make for big savings. A 0 per cent balance transfer credit card will allow you to pay off your existing debt without the interest. There’s plenty of choice in the marketplace, with Barclaycard’s 17 month interest-free card being the market leader in regards to duration.

When switching to a balance transfer card, be aware that it’s likely you’ll have to pay a balance transfer fee, too. But in many cases this will be much lower than the cost of the interest payments that will mount up on your debt, so make sure you do your sums.