Multiple Credit Cards 'not for everybody'

19 June 2006
Financial adviser Money Advice Trust has warned consumers against taking on too many cheap or zero per cent credit cards deals to ease debts as it may lead to more problems further down the line.

The company has said that multiple cards are "not for everybody" because if people are not disciplined enough to use cards just for the value-for-money deal then future spending on more than one flexible friend can escalate quickly.

"Balance transfers can work very well for some people," said Beccy Wilks, a spokesperson for the Money Advice Trust, "but if you are going to transfer your credit card balance to a nought per cent deal, it's important that you cut your old card out.

"If you don't pay off [your balance] within the nought per cent period, the interest rates normally get quite high," she added.

Ms Wilks, however, did explain to consumers that there were benefits: "If you can pay off within the nought per cent period, it's going to save you money."

The news comes soon after American Express announced it was cutting out its special deals for customers switching their balance to its cards.

To read more about credit cards, click here.


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