Anyone with a credit card being handed free £1,533 for making one change

Anyone with a credit card being handed free £1,533 for making one change
-Credit:Reach Publishing Services Limited


Anyone with a credit card in their wallet or purse has been urged to come forward for a £1,000 boost. Half of credit card customers are being urged to cut interest payments and save £1,533 as the Cost of Living crisis continues after Christmas.

Every January, hundreds of thousands of credit card customers get their finances in shape, and cut interest payments with a balance transfer. Last January alone, there were 853,000 balance transfers, a 19 per cent increase when compared to the average across the rest of the year.

TotallyMoney CEO, Alastair Douglas, said: "January’s a great time to get your finances in shape, so you can start the year on the front foot. This might include setting up a savings goal with a bank who’s offering a competitive rate, making the most of a current account switch offer, or cutting interest costs with a balance transfer.

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"And with two banks now offering up to 31 months, you could press pause on interest payments until August 2027. Finding out if you’re eligible for an offer doesn’t take long, and it could save you hundreds if not thousands of pounds.”

Half of credit card customers could benefit from a balance transfer, as they’re paying interest on £33bn worth of borrowing. While the total amount of debt has increased by 6.6 per cent in the past year, research has also shown.

With a balance transfer, eligible customers can shift their existing debt to another provider, and for a small fee they can cut interest payments for a set amount of time. Douglas said: “The longest offers will usually be made available to people with the best credit scores, so download a personal finance app and check yours for free. If it’s not quite perfect, you should be given a personalised plan to get yourself financially fit for the new year.

"When applying, shop around, and keep your eyes peeled for offers which come with pre-approval, guaranteed credit limits, guaranteed rates, and guaranteed 0% offer durations. That way you’ll know if you’ll be accepted before you apply, and you can be totally sure that you’ll get exactly what was advertised.”