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This payment is billed to compensate for the interest-absolutely free durations authorized to card holders. It is usually 2% of the sum transferred. Credit history card businesses in the United kingdom cost a greatest transfer price of &pound50.

Balance transfers are created to aid men and women with significant-fascination debts. The funds saved through this time period can be used to pay out off previous money owed.  Many people, however, commit the prevalent slip-up of paying out lavishly in the course of the lower-desire period. This causes an improve in their credit harmony. When the interval of the lower curiosity rate is over, the large credit balance throws the credit score card holder into a lot more personal debt.

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