Lifetime balance transfers a boon to debtors

by Gill Montia

Story link: Lifetime balance transfers a boon to debtors

Sainsbury’s Bank is recommending lifetime balance transfers as a means of helping people to restructure their debts.

Currently many consumers take advantage of 0% balance transfer agreements, which offer a maximum of 12 months at 0% interest, but commonly come with a balance transfer fee of up to £50.

Making use of this type of balance transfer to manage debt also requires organisation and dedication, if the card holder is not to receive a nasty shock when the period at 0% interest expires.

However, borrowers looking for a longer term solution could find the answer with a lifetime balance transfer, many of which are offered with no fee.

With a lifetime balance transfer, a fixed monthly payment will be required but overpayments are allowed without any penalty, so that when possible, the balance and interest liability can be lowered.

Another key benefit is the establishment of a secure lifetime rate, which can provide a level of peace of mind for those in debt.

Whilst there are other considerations to take into account, such as the comparative costs of payment protection insurance and also the size of the debt itself, lifetime balance transfers can prove extremely competitive when compared with other forms of borrowing.