Pay off your debts for free
Wipe the slate clean at no cost with these cards and current accounts.
Have some credit card debts to pay off but don't want to pay for the privilege? Tesco has launched the Clubcard credit card with No Balance Transfer Fee offering 10 months with no interest to pay on your debt and no balance transfer fee to pay.
The Clubcard credit card with No Balance Transfer Fee also has a 10-month 0% period on purchases and offers Clubcard points on your spending. However, if you’re trying to clear your debt then you should probably avoid spending too much, if at all, on it, unless you’re really disciplined.
Before you rush to sign up, you should do some sums and make sure you'll be able to pay off your debts by the end of the 0% period. There's no point going for a shorter 0% period to save on the balance transfer fee only to discover that you've still got debt at the end of it.
Top 0% period and low fee combinations
If you need longer than 10 months to pay off your debts, there are a number of credit cards offering a decent combination of lengthy interest-free periods and low balance transfer fees.
| Credit card | 0% period | Balance transfer fee | Fee paid on £2,000 transfer | Representative APR after 0% period ends |
|
12 months |
0.5% |
£10 |
18.9% |
|
|
12 months |
0.5% |
£10 |
18.9% |
|
|
15 months |
0.55% |
£11 |
15.9% |
|
|
15 months |
0.65% |
£13 |
17.9% |
|
|
17 months |
0.9% |
£18 |
18.9% |
|
|
Halifax 28-Month Balance Transfer MasterCard |
28 months |
1.5% |
£30 |
18.9% |
|
Bank of Scotland Platinum 28-Month Low Balance Transfer Fee MasterCard |
28 months |
1.5% |
£30 |
18.9% |
|
Lloyds Bank Platinum 28-Month Low Balance Transfer Fee MasterCard |
28 months |
1.5% |
£30 |
18.9% |
*Nationwide current account customers only
If you want the maximum 0% period possible, then Barclaycard's Platinum card offers 33 months with no interest to pay for a 2.89% fee.
Note that you will need a good credit score to get hold of any of the cards mentioned so far.
If your credit rating isn't so great, you could look at the Barclaycard 14-month Platinum card, which offers a year and two months with no interest to pay in return for a 2.9% balance transfer fee.
Play your cards right
Always, always make the minimum repayment each month. If you don't, you'll lose your 0% deal and get a black mark on your credit report.
The overdraft option
Your other option to avoid paying any fees is to switch current account and take advantage of a free overdraft. These have become increasingly rare and you'll only have a year at most before charges kick in.
The Nationwide FlexDirect account is the best on offer, with a year's fee- and interest-free overdraft on offer, subject to your credit score. However, you will need to pay in at least £1,000 a month to qualify.
The Santander 123 and Santander Everyday accounts offer four-month free overdrafts but these may not be of use to many people. The 123 account charges a £2 monthly account fee, although you can earn cashback on certain bills to cancel that out.
Again, you should be sure you can pay off your overdraft in the free period before you open your account, otherwise you could be hit by high charges.
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