Warning: Sort credit card & loan debt NOW
Martin: 'Cheap deals are being pulled. Things may get costlier quickly. Check now if you can cut debt costs. Don't delay, sort today!'
0% balance transfers | New 0% cards | Cheap loans

Martin: "A few weeks ago it was thought the UK base rate may peak at 4.5% - the level it's at today. Then bad underlying inflation figures for April were released. Now the talk is of further rises to a peak of around 5.5%.

"The result is the news is full of stories of pulled mortgage deals, but less covered is the impact on credit cards & loans. It's understandable as the link is more nuanced. In credit cards, the feelers indicate (this is our best guess, not solid info) some of the best 0% deals will be pulled soon, replaced by worse incarnations. With loans, some top deals have already gone, more are likely.

"So ANYONE WHO HAS DEBT, OR IS CONSIDERING IT, should look now as the window of opportunity for lower rates may be shutting. Now over to the team for the practicals of how to do it..."

Credit Cards

First we'll look at what those who already have credit card debt should check. Then how to get a new card if you need to borrow.

A 0% balance transfer is where you get a new card to repay debt on other credit or store cards for you, so you owe it instead but at 0%. As your repayments clear the debt itself rather than cover the interest, you get debt-free much quicker (if you don't borrow more).

Less than a year ago, 34mth 0% balance transfers were available, now the longest is 31. And we're hearing rumblings some top cards will be pulled very soon (and no signs of hot replacements).

- To AVOID REJECTION, spend two minutes on a 0% eligibility calculator. This shows your bespoke acceptance odds for most top cards, so you can minimise applications.

- Aim for the card with the lowest fee in a time you're sure you can clear the debt. Unsure? Play safe and go long.

Always follow the Balance Transfer Golden Rules

It's not just about getting the right card. Full help in Best balance transfers, but in short...

• Always pay at least the set monthly minimum, though ideally more.
• Clear the card before the 0% ends, or you pay the APR.
• Don't spend/withdraw cash. It usually isn't at the cheap rate.
• Usually you must transfer within 1-3mths to get the 0%. Do check.
• You can't transfer between cards from the same banking group.

Quick balance transfer FAQs (click links for answers)
Is it worth applying if my eligibility odds are low? | What if my credit limit isn't big enough? | Can I shift debt to existing cards too? | Should I try to pay off my biggest debt first? SPOILER: NO.

Debt is like fire. Used well, it's a useful tool. Used badly, it burns. But use these 0% purchases cards well and they give you interest-free borrowing on things you buy on them (as long as you pay it off within the 0% period). Done right, it's no-cost borrowing.

We've seen less movement here than in balance transfer deals, but 0% lengths have got slightly shorter and we think that may accelerate. A few key notes before going into the best cards:

- Only borrow if it's planned and affordable. This means it should be for a needed, budgeted for, one-off purchase (eg, a replacement fridge). If in doubt, don't.

- Average credit limits are £3,000 to £5,000. Yours depends on your credit history, but they can be far less (or more).

- To avoid rejection, spend two minutes on a 0% eligibility calculator. This shows your bespoke acceptance odds for most top cards, so you can minimise applications.

Always follow the 0% Purchases Cards Golden Rules

Again, it's not just about getting the right card. Full help in 0% credit cards, but in brief...

• Always pay at least the set monthly minimum, though ideally more.
• Stick within the credit limit, or you can lose the 0% offer.
• Avoid cash withdrawals or shifting debt, it's usually not cheap.
• Clear the card before the 0% period ends, or you pay the APR.
• Remember with credit cards you control the repayments. If you need more structure, consider a loan instead.
  
  

Cheap Personal Loans

Personal loans let you borrow between £1,000 and £25,000 (a few go higher). You're charged interest on what you borrow and you pay it back in fixed instalments over an agreed period of time. We'll start with those who need new loans, then move on to whether you can cut the cost of existing debt.

Six months ago, the cheapest rates were under 3%. And just a couple of weeks ago, three lenders still had rates under 5%. Now there's just one left below 5% and it likely won't be around by the end of the week (though we'd love to be proved wrong about that). Two things before you check out the top loans...

- Only borrow if it's planned and affordable. This means it should be for a needed, budgeted for, one-off purchase (eg, replacing a broken-down car, or home improvements). If in doubt, don't.

- To avoid rejection, use our Loans Eligibility Calculator. It'll show your odds of being accepted for most top loans. Remember though, as you ask for a specific amount when you apply, that your affordability has a big impact here. So you may be accepted for £3,000, but rejected by the same lender for £7,000.

- All these are representative APR, so you may not get that rate. This means only 51% of accepted customers need get the rate shown - the rest can be charged more. You're sadly often only told the actual rate after applying. Even our eligibility calculator must mostly work with representative APRs (though a few lenders now offer guaranteed rates where you know before you apply - look out for them in the calc).

- If you do borrow, follow the Loan Golden Rules. Full info and options in Cheap personal loans, but in brief...

• Minimise the amount you borrow and repay as quickly as possible.
• Pay on time or there's a fee and it's marked on your credit report.
• If the loan's to pay off cards, a balance transfer may be cheaper.
  
  

In debt crisis? Get free debt help

The tips above are for those who can meet repayments and want to cut costs. If you're struggling, answer Martin's three simple questions...

- Do you have sleepless nights or depression/anxiety over debt?
- Do you struggle to meet minimum monthly payments?
- Is your total debt (excluding mortgage/student loan) over a year's salary?

If you answer yes to any of these, then you're at risk of debt crisis, so forget the information above, you'll need a different tack. The best thing to do is get free, one-to-one debt counselling help from Citizens Advice, StepChange or National Debtline. And if you need emotional support, try CAP.

They're there to help, not judge. The most common thing we hear after is: "I finally got a good night's sleep." And don't feel alone, there's no stigma, you can sort this. Read inspiring stories in our Debt-free wannabe forum, and see our Mental health & debt and Debt crisis help guides.