If you’re looking for a way to pay off your credit card debt in the New Year, then Halifax has launched a balance transfer credit card allowing you to spread the cost over 40 months, interest-free.
However, to qualify, you must carry out your transfers within 90 days and transfer at least £100. This offer expires on February 15.
Keep in mind too, you will have to pay a fee that’s calculated as a percentage of the amount you transfer.
What is a 0% balance transfer (BT) card?
You can use a BT card to transfer debt from an existing credit card that is charging you interest to a card which is offering a 0% period.
It means that you’ve got that length of time – in Halifax’s case with this card, 40 months – to pay off the debt.
You need to make sure you pay off the balance before the interest-free period ends, or you’ll start paying interest at 18.95% pa (variable) with the Halifax card. The card has a representative rate of 18.9% APR (variable).*
What are the costs?
You will have to pay a fee for transferring over your balance to this Halifax card.
This is charged at 2.95% of the amount you transfer over. For example, if you transfer £500 of debt at 2.95%, you’ll pay £14.75. If you transfer £3,000, it will cost you £88.50.
You must transfer a minimum of £100.
An initial 3% fee applies but Halifax will then refund 0.05% within 90 days, so the effective fee is 2.95%.
You must also make the transfer within 90 days of being accepted for the card, and you also can’t transfer from another Halifax card to this one. After the 90 days any balance transfers will revert to 18.95% pa (variable) with a one-off transfer fee of 3%.