LOOKING to make a big purchase in 2019? Then you should think about picking up a 0 per cent purchase card.
Used correctly a purchase credit card can help you spread the cost of a big-ticket item – such as a new kitchen or holiday – without racking up hefty interest charges.
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The longest deals on the market now stretch to a whopping 28 months – giving you the chance to pay off your debt in just over two years.
The Sun has taken a look at some of the cards with the longest 0 per cent periods on the market but before we do, a word of warning.
Always be responsible when it comes to spending on credit cards – try and clear your balance in full each month outside of a 0 per cent purchase period, otherwise you’ll start paying interest on your balance.
If you can’t clear it each month, ideally you should try and pay more back than the minimum monthly payments, otherwise your debt will take longer and longer to clear.
And never use cards to regularly cover gaps in your monthly income either, as doing this will make your balance soar too – always make sure you can afford to pay back what you borrow.
Purchase credit cards: What you need to know
PURCHASE cards can be a great way of spreading the cost of expensive items. But you’ve got to use them properly otherwise it could cost you.
Here are some tips from MoneySavingExpert on what you need to know:
Never miss a payment – Being in a 0 per cent period doesn’t mean you don’t have to make your monthly repayments. If you miss just one payment you’ll lose your 0 per cent period all together and start being charged interest on your balance.
Clear your balance – If you don’t clear your balance within the 0 per cent period, you’ll start being charged interest. Work out how much you need to pay each month by dividing your balance by the number of months your 0 per cent period is and set up a direct debit for that amount.
You might not get the headline 0 per cent period – Only those with the very best credit histories will get accepted for the cards that have lengthy 0 per cent periods, and some providers could offer you a deal with a shorter period instead. Check the details of the card you’re looking at to see what you might be offered below the headline offer.
The credit cards with the longest 0 per cent period
- Barclaycard Platinum 28 Month Balance Transfer Credit Card – Apply Here
This card from Barclaycard offers one of the longest 0 per cent deals currently available at 28 months.
If you’re accepted you’ll get the entire 28 months and once this comes to an end, you’ll be charged 19.9 per cent.
You’ll need to make payments of at least £5 or 2.5 per cent of your main balance plus any instalment plan due for that month – whichever is highest.
- Sainsbury’s 28 Month Bank Balance Transfer Credit Card – Apply Here
Sainsbury’s credit card also comes with a 0 per cent purchase period of 28 months, so you can pay down your existing debt and stop incurring interest in over two years.
After the 0 per cent period comes to an end, the card will revert to an APR of 19.95 per cent on purchases.
If you give your Nectar card number when you apply, you’ll get 750 bonus Nectar points worth £3.75 each time you spend at least £35 at Sainsbury’s in the first two months up to a maximum of 7,500 points.
- Virgin Money 29 Month Balance Transfer Credit Card – Apply Here
You’ll get 29 months to pay off a big purchase if you get accepted for Virgin Money’s 29 Month Balance Transfer Credit Card.
The 0 per cent rate applies to all balance transfers in the first 29 months and money transfers in the first 20 months as well as purchases made for the first 3 months.
After those periods, you’ll pay an interest rate of 21.9 per cent for purchases and balance transfers and 23.9 per cent for money transfers.
- Barclaycard Platinum 27 Month Purchase and Balance Transfer Visa – Apply Here
This card from Barclaycard comes with a 0 per cent deal of up to 27 months.
You also don’t have to pay interest for 27 months on balance transfers, although a 2.7 per cent fee applies.
If you don’t clear your balance by the end of the 27 months, you ‘ll be charged 19.9 per cent in interest.
How to cut the cost of your debt
BEING in large amounts of credit card debt can be really worrying. Here are some tips from Citizens Advice on how you can take action.
Check your bank balance on a regular basis – knowing your spending patterns is the first step to managing your money
Work out your budget – by writing down your income and taking away your essential bills such as food and transport.
If you have money left over, plan in advance what else you’ll spend or save. If you don’t, look at ways to cut your costs
Pay off more than the minimum – If you’ve got credit card debts aim to pay off more than the minimum amount on your credit card each month to bring down your bill quicker
Pay your most expensive credit card sooner – If you have more than one credit card and can’t to pay them off in full each month, prioritise the most expensive card (the one with the highest interest rate)
Prioritise your debts – If you’ve got several debts and you can’t afford to pay them all it’s important to prioritise them.
Your rent, mortgage, council tax and energy bills should be paid first because the consequences can be more serious if you don’t pay
Get advice – If you’re struggling to pay your debts month after month it’s important you get advice as soon as possible, before they build up even further.
Groups like Citizens Advice and National Debtline can help you prioritise and negotiate with your creditors to offer you more affordable repayment plans
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