Bad debts force credit card companies to withdraw 0% card deals

As credit card lenders suffer from increasing bad debts, the number of 0% credit card deals on offer is falling.

The number of interest free balance transfers is declining as credit card companies experience increasing problems with bad debts from their customers.

The number of longer term offers is also falling, according to research by Moneynet.

There are currently 24 0% credit card deals, whereas a year ago, card companies were offering 39 different free balance transfer deals.

Although this shows that the balance transfer market has not gone altogether, it does point to card lenders tightening their lending conditions as more of their customers default on their monthly payments.

It is only customers who have squeaky clean credit histories who will now be accepted for the remaining 0% balance transfer card deals, as lenders become ultra cautious during the recession.

The interest rates for credit card cash transactions is also rising rapidly, even though the Bank of England base rate remains at 0.5%.  The rate for cash transactions has risen by 1.3% in the last twelve months and 7% in the last four years.