Martin Lewis viewer says she re-claimed from bank to cover debt
Martin Lewis, the Money Saving Expert, is well-known for providing money saving tips to help those who are looking at their finances. In his latest update, Martin has examined debt, an issue which is plaguing many households, particularly with the effects of the coronavirus pandemic, and the Christmas season. Martin has pointed to a zero percent balance transfer card as a potential solution to debt in 2021.
As part of his latest Money Tips weekly newsletter, Martin has urged Britons to check their eligibility for this type of card.
A balance transfer card allows people to pay off debt on their old credit cards, sometimes at zero percent, meaning there are no additional fees involved.
The balance transfer card usually helps people to pay off their debts faster, as all attention is focused on repayment.
There are a number of options available on the market at present, and what Britons choose is often dependent on the length of time they wish to pay the debt over.
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Martin, however, drew attention to certain beneficial deals which those in debt may wish to consider this new year.
He explained: “If you can clear the debt within 18 months, there are now two cards with no fees and a guaranteed zero percent period.
“One even gives £20 cashback on top to some.”
The deals Martin referred to are offered by a few familiar providers to help Britons tackle their debts.
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The first is Santander, which is currently offering the joint-longest zero percent deal, with no fee to pay.
After this period, the percentage increases to 18.9 percent representative APR.
Another deal offers Britons the chance to effectively be paid to clear their debts on a zero percent offering.
Barclaycard is offering a 15 month period at zero percent, but also a cashback offer to those who clear a certain amount.
The provider offers £20 cashback if transferring at least £2,500 within 60 days.
The percentage increases to 21.9 percent representative APR after the zero percent period.
Finally, Sainsbury’s Bank is offering the joint-longest zero percent deal at up to 18 months, but it is worth noting there are certain eligibility rules.
Some Britons may be accepted, but offered 12 months on a zero percent deal, or required to pay a 0.5 percent fee – usually if a credit score is poorer.
In addition, Martin warned the provider will not accept anyone who is self-employed, so Britons should be aware of this detail.
It is, however, also worth noting there are usually eligibility criteria people must meet in order to secure a zero percent balance transfer card.
These criteria will vary from provider to provider, and thus it is important for Britons to approach the situation with their eyes open.
Some providers may undertake a credit check, and also examine a person’s income.
Britons may wish to check their eligibility before approaching a provider, but should also note some checkers may affect their credit score.
Martin Lewis is the Founder and Chair of MoneySavingExpert.com To join the 13 million people who get his free Money Tips weekly email, go to www.moneysavingexpert.com/latesttip.
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