The AA is promoting its Transfer Plus credit card as an effective way to consolidate debts and a cheaper way to repay Christmas costs for consumers who are still feeling the pinch from festive spending.
The Transfer Plus card offers a rate of 6.9 per cent for the life of the money transferred over to it and users are able to select the length of the term they repay the debt and there is no penalty for early redemption.
With a recent report from consumer champion Which? showing that 46 per cent of consumers paid for Christmas using a credit or store card, the new AA credit card allows cardholders to transfer one or more balances to the new card and benefit from just one cheap repayment rate on their debts.
Mark Huggins, director of AA Financial Services said: “The last thing you should do is ignore the bills dropping through the door.
“For cards bearing a high interest rate, including many store cards which might have been taken out to benefit from pre-Christmas discounts on gift purchases, charges can mount up.”
The card is available online and the rate is applicable on money and balance transfers until the amount transferred is paid off.
All transfers must be made within 60 days of opening an account and there is a two per cent balance transfer charge on the amount transferred to the Transfer Plus credit card.
Mr Huggins added: “A prudent way to deal with big card bills, especially if you can’t afford to pay them off straight away, is to get the interest rate down by consolidating them.
“For many a personal loan won’t be the answer where interest rates for sums below £7,000 are likely to be high. For smaller sums spread over a number of commitments, a longer term money transfer offer might be the answer.”
“We believe the new AA Transfer Plus card, which offers a competitive, low rate for the life of the balance, is one of the most suitable on the UK market for helping consumers consolidate more expensive debts.
“It offers a genuine option to lower-value personal loans.”
Mr Huggins points out that at a time when typical interest rates for say, a £3,000 loan from high street lenders can be up to 29.9 per cent, the new Transfer Plus card offers consumers a real alternative.
He adds: “The card can offer certainty of cost on borrowing with no early repayment fees and flexible payments if circumstances mean customers can pay more in a particular month.”
Full information about the card can be found at www.theAA.com/credit-card
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