Credit card holders can save hundreds of pounds in interest charges and become debt-free faster by making one strategic move: switching to a 0% balance transfer credit card. According to the latest UK Unsecured Lending Trends Treasury Report from Moneyfactsgroup.co.uk, failing to take advantage of 0% offers and simply paying the minimum default amount could result in unnecessary huge costs.
How much can be saved?
Rachel Springall, finance expert at Moneyfacts, explained that a £2,000 debt would take two years to pay off if someone repaid a fixed £115 every month while being charged 36.0% APR, costing almost £700 in interest. However, those who move this debt to a 0% balance transfer card can clear it in just over 12 months by making £150 monthly payments, saving the interest entirely.
Current deals available
Springall highlighted several fee-free 0% balance transfer deals currently on the market: a 13-month 0% balance transfer deal from Barclaycard, a 12-month offer from Virgin Money and Santander, and 11 months with NatWest and RBS. These offers allow cardholders to move existing debt and pay it off without accruing interest during the promotional period.
Context and importance
Springall noted that recent data from UK Finance revealed 48% of credit card debt incurred interest in March 2026, underscoring the importance of prioritising debt repayment. She said: “Competition has ignited on introductory interest-free card offers which could help defuse the glaring debt time bomb facing households. This is great news at a time when the average interest rate charged on credit cards is at a 20-year high.”
Record-high deals
The average length of a 0% balance transfer deal is now 605 days, a four-year high, while the upfront cost to move debts has dropped to 2.48%, its lowest in over a year. For large purchases, the average length on 0% purchase terms is 303 days, also the highest in four years. Springall added that credit cards offer additional protection under section 75 of the Consumer Credit Act for goods or services valued over £100 up to £30,000.
