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Disappearing balance transfer deals have "knock-on effect"

Disappearing balance transfer deals have "knock-on effect"

• Pay off those credit cards with a remortgage or loan

 

The disappearance of balance transfer deals in the credit card market will have a "knock-on effect" for debt-burdened consumers, one expert has said.

According to debt adviser and spokesperson for National Debtline Beccy Boden-Wilks, the credit crunch means borrowers are finding it harder to agree a plastic loan with a lender.

She noted that cheap credit deals are very hard to come by in the current economic climate.

"People can't manage their large amount of debt as cheaply as they could before," she said.

Ms Boden-Wilks stated that this problem is likely to strain consumer finances and may lead to bigger debt problems.

"If people can't afford their non-priority debts anymore sometimes they'll stop paying their mortgage as well," she warned.

Sainsbury's Finance has predicted that consumers will attempt to transfer £1.1 billion of debt a month between credit cards this year.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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