Industry officials have said that it has become increasingly important for those with interest free credit cards to ensure that they repay the balance on their cards in full within the interest free period, and this is because of a sting in the tail that has been highlighted in a recent report.

There are many different interest free credit card deals in the UK these days, and this includes both balance transfer credit card deals and 0 percent purchase credit card deals. Many people opt for these cards because of the ability to save money on the amount of interest that they pay on their debt, and for those that repay the balance within the interest free period the savings can be significant.

However, there are some people that do not manage to repay the balance before the interest free period expires, and these are the ones that could fall victim to the sting in the tail of these credit cards. According to reports many credit card firms that offer interest free purchases or balance transfers counteract this by charging sky high interest rates later on.

This basically means that those that do not repay the balance within the interest free period could end up paying a considerable amount of interest because of the rates that the provider charges later on, hence the importance of clearing the balance in total before the interest free period runs out.

One financial industry expert said: ‘There is a sting in the tail to these deals that makes it even more important to ensure you pay off your balance before the interest-free period ends.’

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