Consumer champion Martin Lewis provided viewers with essential tips on how to manage debt and access support during a segment of his ITV show. He highlighted the importance of addressing bills promptly and recommended balance transfers to minimize interest payments.
Martin Lewis, the well-known consumer advocate, dedicated a considerable portion of his ITV show this week to providing guidance on reducing debt and finding support if financial obligations become overwhelming. He urged viewers not to disregard any bills or correspondence due this month, which might be higher than usual due to Christmas-related expenses.
According to Martin, the most effective way to alleviate credit card debt is to transfer the balance to a new card offering a zero percent interest rate. His primary advice for individuals facing debt is to minimize the amount of interest paid, typically around 25%, repay borrowed funds as quickly as possible, and seek assistance from a non-profit organization if the situation becomes too difficult to handle independently. Martin's primary solution for reducing the outstanding amount is a zero percent balance transfer. However, he stressed the importance of using an online eligibility checker before committing to any arrangement, as this will have the least impact on your credit score, reports the Daily Record.It's also crucial to compare balance transfer deals with the longest terms available, as this means you'll only be repaying the money you owe and not any interest. This can often lead to a cycle of perpetual credit card debt, as the interest can exceed the minimum monthly payment. In this week's edition of the MoneySavingExpert newsletter, Martin explained that a 0% balance transfer involves obtaining a new credit card to settle existing debt, allowing individuals to owe the new card instead, but without any interest charged for a predetermined period. This enables a larger portion of the payments to reduce the actual debt, leading to becoming debt-free more quickly. To assist everyone in making informed decisions, Martin shared his 'golden rules' for balance transfers. Martin Lewis provided guidance on how to effectively manage debt with 0% balance transfer credit cards. He advised: 'First, clear the debt, or at least balance transfer it again if you can, before 0% ends or you'll pay that higher 25% APR. Second, never miss a minimum repayment each month; if you do, you will often lose the 0% and be immediately charged 25% - if you have bad personal admin, set up a Direct Debit to pay the minimum, that way you'll never miss and then manually overpay each month.' He also cautioned: 'Number three, don't spend or withdraw cash as it isn't at the cheap rate on these cards.' Regarding the timing of balance transfers, he suggested: 'Number four, try and do the transfer when you apply, if you're not ready to do it, check how long you've got - it's usually 60 to 90 days.' For those struggling with debt, Martin emphasized the importance of seeking help and provided resources, including charities and organizations that can negotiate with creditors to arrange breathing space or payment holidays. For individuals in need of assistance with money, debt, or accessing financial support, free, confidential, and impartial advice is available. You can also catch up on the Martin Lewis Money Show Live on the STV Player of ITVX
DEBT REDUCTION CREDIT CARDS FINANCE ADVICE MARTIN LEWIS BALANCE TRANSFERS
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