Martin Lewis fan saves £1,000 a year thanks to easy credit card tip

15 June 2024 , 06:00

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Martin Lewis has often spoke about 0% balance transfer credit cards (Image: ITV)

A fan of Martin Lewis has revealed how they saved £1,000 in credit card interest.

MoneySavingExpert.com reader Trevor explained how he moved his existing credit card debt to a 0% balance transfer card, where he will now pay no interest for a set amount of time. By not having to pay interest, you'll clear what you owe much quicker - and save yourself money each month.

In a message shared in the latest MSE newsletter, Trevor said: "Hi Martin & co. I was paying £300 for two credit cards, costing me £76/mth interest. I took out the Virgin Money deal with £5,299 credit, and transferred both card balances to it for a £164 fee. With 28mths 0%, I'll have it all paid off in 15mths, saving me a bankroll. Bangin'! Thanks for all the advice, keep it coming."

You should always use an eligibility calculator first before applying for any credit card, to check which deal you are likely to be accepted for. MoneySavingExpert.com has a 0% balance transfer calculator which carries out a “soft credit search” and won’t be seen by lenders.

You need to be sure you pick a card that comes with enough months of 0% interest for you to clear your debt - otherwise you’ll start paying the representative APR once the promotional period is up. Only those with excellent credit scores are likely to get the longest number of months advertised - but you may not necessarily need the longest period on offer anyway.

'I cleared £15,000 debt by transforming my finances - here's how I did it'

There are sometimes fees involved when transferring your debt - however, if you don’t need the longest deal, there may be shorter cards available with cheaper, or sometimes no fees. The longest 0% balance transfer card right now is from Tesco Bank, where you could get up to 29 months interest-free.

This card comes with a 3.49% fee and reverts to 24.9% APR at the end of the 0% period. The longest 0% period with no fees is from NatWest, where you could get 13 months interest-free.

Levi Winchester