Martin Lewis urges consumers to move debt to 0% card before interest rate hike expected TOMORROW

MARTIN Lewis has urged Brits to move their debt to a 0% balance transfer card before an interest rate hike is announced tomorrow.

The MoneySavingExpert founder said the best card will stop taking applications today – so it’s crucial that consumers act now.

Martin Lewis said the best 0% balance transfer card will close tonight

If you have credit or store card debts debts that are gaining interest you can move the money you owe onto the card.

That means you can focus on repaying the debt, rather than the amount added in interest, and it can help you get back in the black faster.

The Bank of England is expected to announce a rate hike tomorrow, meaning any interest you do pay could increase.

In today’s MoneySavingExpert newsletter, Martin said Virgin Money’s 0% balance transfer card will close this evening.

“If you pay interest on credit or store card debt, the window to secure long-term cheap interest is rapidly closing,” the newsletter said.

“A balance transfer is where you get a new card to repay old cards, so you owe it instead but with NO INTEREST.

“That way more of your repayments clear the actual debt, so you’re debt-free quicker. Yet the market’s longest 0% deal is being pulled imminently.”

The Virgin Money option is currently the best on the market as it doesn’t charge interest for the first 35 months – currently the longest period available.

There are other deals available, and you should do your own research to make sure you choose the card that best suits your needs.

MoneySavingExpert has a comparison tool to help you decide which balance transfer card will work for you.

It’s worth noting that only people with the best credit ratings will be accepted for the top deals though.

Even if you do get accepted, you may also be offered a smaller 0% period and be charged a bigger transfer fee.

You should never miss the minimum monthly repayment or you might lose the 0% interest-free period, meaning it will cost you more.

After the interest-fee period you will be charged 21.9% per year, so make sure to pay off your debts by then or consider switching the remaining balance to another card.

You shouldn’t spend or withdraw the cash as you’ll be charged and it could affect your credit rating.

Consumers usually have to transfer their debts within the first three months of opening the card to get the interest-free deal – so make sure you check the terms and conditions.

You also can’t usually transfer debts between cards belonging to the same banking group.

For example, if your debts are on a Virgin Money credit card, it’s unlikely that you’d be able to transfer the balance to that lender’s 0% card.

How to transfer your debts to a 0% card

You can usually apply for a balance transfer credit card online or on the phone, and banks may be able to help in-branch.

To make an application, you will need to provide your name, address and an email as well as details of your income so a provider can assess your eligibility.

You will also need to provide details of how much money you want to transfer to the new card, but you can often do this after you have been accepted.

Applicants need to be over 18.

If your application is approved, you will need to transfer the balances within a set period, usually around 60 or 90 days.

Your old balance will then be cleared and you can start making interest-free repayments on your new card.

There are lots of different approaches to clearing your debts, including the snowball method which involves repaying the smallest first.

We spoke to a debt expert who shared her top tips for repaying the money you owe this year.

If you’re struggling you should reach out for help – there are organisations which can offer you free debt advice.