| If you have just gotten a new card with a great rate, | | | | that you check the associated fees for balance |
| you might want to take another look. Although you | | | | transfers before proceeding. |
| might have secured 0% for the next 6 months, there | | | | Paying off the cheapest debts |
| are often a range of cleverly disguised fees and | | | | Another procedure that can cost you money is the |
| penalties to take into account. If you are unaware of | | | | way that your card issuer pays off the balance you |
| them then these fees and penalties can really add up, | | | | have. As you begin to pay off the balance, the card |
| and end up making your great deal cost you a lot of | | | | issuer can decide whether to pay off the higher rate |
| money. Here is some advice about how to identify and | | | | part of the balance or the lower rate part. For |
| avoid these sneaky card charges. | | | | example, if you have made a balance transfer of |
| Removal of benefits | | | | £1000 to your card at 0%, and then have |
| One of the sneakiest charges is not really a charge at | | | | £500 in new purchases at 17% interest, the bank |
| all, but rather a removal of the benefits that you have | | | | is more than likely to pay off the 0% amount first so |
| on your card. If you have a low APR or balance | | | | that they can make money in interest off the other |
| transfer rate, then you should not take these for | | | | amount. If you are going to get a new card, check out |
| granted. Although you might believe this deal is secured | | | | the way that the issuer pays off the balance, because |
| for the next 6 months as promised, this is subject to | | | | if you can find one that pays the expensive part off |
| you meeting strict criteria. If you are even 1 day late | | | | first then you could save some money. |
| with paying your bill, or go over your limit by the | | | | Penalty fees |
| smallest amount, these offers can be taken away | | | | Although your card might have low APR and a nice |
| from you and replaced with a much higher APR. | | | | credit limit, if you don't stick to making your payments |
| Although this is explained in the small print of the | | | | on time then you could end up paying huge amounts in |
| contract, many people overlook this and then feel the | | | | penalty fees. For example, if you have a balance of |
| sting when their 0% credit card turns into a 20% one. | | | | £990 on your card with a limit of £1000 and |
| Make sure that you know the conditions for keeping | | | | you don't pay your bill on time, you could be hit with a |
| your deal, and then stick to them as best you can. | | | | £25 charge. This charge will put you over your |
| Balance transfer charges | | | | credit limit, and trigger another £25 charge. Before |
| Although some cards offer a 0% rate on balance | | | | you know it you could have paid £100 in charges |
| transfers, that does not stop them charging you a | | | | just for being a day late with payment. Although some |
| handling fee for the transfer. Despite you not having to | | | | credit card charges are disguised well, it is important to |
| pay interest on the transferred balance for a period of | | | | read the contract thoroughly and check all the charges |
| time, it will cost you money to transfer the balance. If | | | | before signing anything. If you do this then you will |
| your balance is relatively low then you could be forking | | | | avoid most sneaky card charges and be able to take |
| out a hefty percentage of the total amount. Make sure | | | | advantage of your low rates. |