Will Becker, spokesperson from TotallyMoney said, “This new card is taking on the payday loan market."
London, UK (PRWEB UK) 25 February 2013
For those paying interest on a payday loan, particularly people who have rolled over a payday loan, the Balance Plus card can help them freeze interest and get their finances back on track. It can also provide relief to those who are paying expensive charges and interest on an overdraft. It is easy to transfer money from the card direct to a current account (a 3% fee applies). From there the customer can clear the expensive debt with the lender and they won’t be charged any interest on the transferred sum until July 2013 as long as the card is taken out by the end of March.
The offer is also open to debt transferred from other credit cards.
Will Becker, spokesperson from TotallyMoney said, “This new card is taking on the payday loan market. All the other ‘Money Transfer’ cards only accept people with exemplary credit records. Capital One’s offer is the first we’ve seen that will offer this feature to people who’ve got lower credit scores, just the people for whom this feature is most relevant. When the interest free period expires, the APR is 34.9%. That‘s expensive but not compared to payday or overdraft costs. The key is to ensure the balance is paid off before the 0% period ends.”
Some tips to get the best results from the Capital One Balance Plus card:
- It can take up to 10 days to get the card, and it isn’t possible to transfer money until the card arrives so it is important to get organised to avoid needing to roll over an existing loan.
- The 0% part of the offer is only available for a limited period.
- There is a transfer fee of 3% of the balance that is transferred, but this solution smashes the cost of a payday loan debt and may be better for people’s credit ratings than continued payday borrowing.
- A minimum payment is required every month (for most people this will be 1% of the balance outstanding plus any interest charged that month if the balance gets below a certain level).
- This card isn’t the best for new spending – as there’s no interest free period on new spending.
- There is no need to pay the card off quickly as long as it is paid off before the 0% period ends.
The Capital One Money Transfer card can be found online at http://www.totallymoney.com/exclusive.
For further comment on the innovation coming in credit cards which will take on the payday market, read Will Becker’s Blog: http://www.totallymoney.com/will-becker-blog/
Payday loans in stats:
- 4 million people took out payday loans over Christmas
- APRs can get to over 4,000%
- One in 3 payday loans are taken out to pay off another one
- 57% of people miss at least one payday loan repayment.
TotallyMoney.com is already one of the most visited credit comparison destinations in the UK. Having grown at a rapid rate, we are now aiming to change the game altogether by developing a revolutionary approach to credit comparison. By creating exceptional comparison tools and publishing indispensable content, TotallyMoney is empowering people to make better financial choices.
Editor and supplementary notes:
The information contained in this press release is intended solely for journalists and should not be used by consumers to make financial decisions. Any consumer interested in learning more about any of this product should visit http://www.totallymoney.com/exclusive for full terms and conditions.
For further information, contact:
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