Interest-free credit card transfer deals at a record low

The availability of such cards is now at a record low, according to industry website Moneyfacts. co.uk, and could have serious implications for people in persistent debt.

Moneyfacts, whose credit card data goes back to 2006, said the number of balance transfer deals on the market which have an introductory zero-interest period has fallen to its lowest level, standing at 87 in September, down from 101 in June.

Rachel Springall, a finance expert at Moneyfacts.co.uk, said: “It’s clear to see that the credit card market is adapting to economic pressures and growing scrutiny regarding consumers with persistent debts.

“Credit card providers have diluted their enthusiasm to offer table-topping interest-free balance transfer offers over the last few months, resulting in the number of deals with this feature falling to a record low of 87, down from 101 in June.

“If lenders continue to tighten their interest-free offers, the cost of persistent debt will only escalate further and could result in customers paying out more in balance transfer fees, time and time again.

“These fees are on the rise, up from 2.04 per cent on average in January to 2.2 per cent today.”