| Low APR cards | | | | lots of money for the bank - will be paid off last so |
| Low APR credit cards offer a far lower than average | | | | that you pay interest on them for as long as possible. |
| rate of interest on balance transfers, without having to | | | | This means that if you transferred £3,000 and |
| pay a fee to move your money. Although you'll still | | | | then spent a further £2,000 on your card, any |
| have to pay interest each month, this will only be | | | | payments you make against your debt will be first |
| around six per cent - a rate that will last for the life of | | | | allocated to the £3,000 you originally transferred, |
| your balance so there won't be an interest rate jump | | | | and which carries a lower rate of interest. The |
| to watch out for once the promotional period has | | | | £2,000 will be left in the account for as long as |
| ended. | | | | possible, accumulating interest at its higher rate. |
| Low APR credit card are good for people who tend | | | | How you spend |
| to regularly or only ever pay the minimum amount off | | | | You need to be aware that certain types of spending |
| their debt. Different credit cards might have attractive | | | | attract different rates of interest. While you can rest |
| headline rates but they won't change your bad habits, | | | | assured that you'll pay the lower rate on your |
| so if you're not very disciplined with money, the | | | | transferred balance, if you take out any cash, do any |
| chances are that you'll still have an outstanding balance | | | | online gambling, or with some cards even buy gift |
| when the interest free period runs out on your zero | | | | vouchers, you'll end up paying an even higher rate than |
| per cent credit card. This will land you with a much | | | | the standard APR - as high as 30 per cent with some |
| higher rate of interest all of a sudden - but with a low | | | | cards. And again, this will be the last thing to be paid |
| APR card you won't have to worry about this. | | | | off from your debt. |
| Many also include the same benefits as 0 APR credit | | | | Is this the card for me? |
| card, offering interest free purchases too. But there | | | | The ow interest credit card works best for people |
| are still a few things you need to consider when | | | | who either have a substantial amount to pay on their |
| choosing your card. | | | | credit card, or who know they will only be able to pay |
| The rate on other spending | | | | a small amount off each month. If you're considering |
| If your card doesn't come with interest free purchases, | | | | one of these cards you should think about how long |
| or you are out of the promotional period, you need to | | | | you think it will take you to pay your balance off - |
| know the rate you'll be paying on any more spending | | | | being realistic - and work out how much interest you |
| you do with your low life-of-balance card. While your | | | | will pay overall. Then you can compare this to the cost |
| low ARP will stay in place until you've paid your | | | | of a zero per cent card - remembering to include the |
| transfer off, anything you spend on top of this will | | | | transfer fee and the higher rate of interest after the |
| carry a higher rate. | | | | promotional period - to decide the best option for your |
| Where your payments go | | | | personal needs. |
| All credit cards carry "tiered" interest payments. This | | | | Make sure that you always read the terms and |
| means that when you pay money off your card, it | | | | conditions of your card so that you know exactly |
| goes towards the "free" or "cheap" debt first - those | | | | what you're signing up for and to ensure that you don't |
| things that carry the lowest interest. Any higher interest | | | | get caught out on any instant cash transactions. |
| purchases, or cash advances you make - that make | | | | |