The £1,679 question: are you paying too much interest?

With the cost of living still biting and interest rates not budging much, more and more people are looking for ways to cut their borrowing costs. One option that might be worth a closer look if you’re carrying credit card debt is a balance transfer.

New analysis shows that nearly half of credit card customers are paying interest every month. If that’s you, switching your balance to a card with a 0% deal could potentially save you hundreds, if not thousands, of pounds in interest.

What is a balance transfer?

A balance transfer lets you move your existing credit card debt to a new card that offers 0% interest for a set period, sometimes over two years. You’ll usually pay a small one-off fee (typically around 3-4%), but in return, you get a window where you can pay down your debt without racking up interest charges.

It’s like hitting pause on your debt. And that pause could be worth serious money.

How much could you save?

According to research by TotallyMoney, someone with an average credit card balance of around £2,995 could save up to £1,679 in interest by switching to one of the longest 0% balance transfer deals currently available.

Even if your credit score isn’t perfect, shorter-term interest-free offers are still available, and the savings can be substantial. Some customers with a good, or even a pretty average, credit score could save between £394 and £881, depending on the deal and how quickly they repay their balance.

Is it right for you?

Balance transfers aren’t for everyone, and there are a few things to consider:

• Check your credit score – The best deals are usually aimed at people with strong credit histories.
• Factor in the fee – Most balance transfers come with a small upfront cost. Weigh this up against the interest you’d save.
• Don’t spend on the new card – Using the new card to make purchases could mean losing the 0% deal or getting charged interest.
• Have a plan – Treat the 0% period as a deadline. Divide your balance by the number of months interest-free and aim to clear it in that time.

Struggling to keep up with repayments?

A balance transfer might help if you're on top of your payments but want to cut costs. But if you’re falling behind or juggling multiple debts, it's important to get the right kind of support.

At Money Wellness, we offer debt advice tailored to your situation. We can:

• run through all your options for dealing with your debt
• check if you’re missing out on benefits or financial support
• provide budgeting support
• negotiate affordable repayment plans with creditors

Let’s make your money go further

Switching to a 0% balance transfer card won’t solve every financial problem, but it could be a simple, effective way to stop your debt from growing and start reducing it faster.

And if you need a bit more help? That’s what we’re here for.