By Joseph Kenny
Credit card jumping has become a common practice. The term
refers to the habit of moving debt balances from card to card
to take advantage of preferential rates. But just how
worthwhile is credit card jumping for consumers?
UK consumers have staggering levels of debt. Consumer
has grown by more than 50% in five years. It's no wonder that
people are looking for new ways to ease the debt burden.
card jumping offers one possible solution.
Money Saving Device
People who are carrying large amounts of debt can save
of pounds in interest simply by taking advantage of the latest
credit card balance transfer deals. Many of these offer a 0%
interest rate for a fixed period, such as three, six, nine or
even 12 months.
As well as transferring balances from other credit cards to a
0% credit card, consumers are sometimes able to transfer
balances from store cards and even outstanding loan amounts.
is worth checking to see if these transactions also benefit
the 0% balance transfer rate.
Transferring a balance to a 0% credit card means that any
payments made are paying off the principal rather than the
interest. This reduces the amount owed, which is good news for
those using this as a debt management method. Many card
do charge a balance transfer fee to curb the practice of
card jumping, so it is worth looking around for the best deal.
Getting The Best From Credit Card Jumping
To get the best from 0% credit cards, many savvy consumers
from card to card when the preferential rate period expires.
This requires some organization, but credit card jumping can
mean that debt balances continue to go down as consumers move
money (or rather, debt) from card to card. Those who don't
their debt at the right time often find they are paying a much
higher interest rate – and the debt is not being cleared. This
strategy works best when consumers pay on time. Late payment
can result in fees that increase consumers' level of debt.
Consumers who are using many credit cards to manage their debt
should consider creating standing orders to manage payments
automatically. It is also worth using a spreadsheet or
program to keep track of when it is time to move to the next
Credit card jumping can be an effective way of reducing debt,
providing consumers do not add any new debt. There are also
other incentives for using 0% cards, such as charitable
contributions, rewards points, air miles, travel insurance and
much more. It is worth shopping around to get a reward as well
as the interest-saving rate.
Credit card jumping can be a good strategy for people who are:
1. organized about managing debt
2. trying to clear a large debt
3. prepared to shop around for the best balance transfer deals
4. able to pay on time consistently so as not to damage their
About The Author: Joe Kenny writes for the UK personal finance
sites www.ukpersonalloanstore.co.uk and also