New Halifax credit card set to go down a storm

September 26, 2007

These days banks seem to be constantly introducing new finance options to their customers in order to keep up with the market. As debt levels reach their highest, people are always looking for new ways in which they ca save money and still get the things that they need. One particular way in which they do this is by getting a credit card with a long interest free period.

Now usually the interest free period is around twelve months at the most. However you would be lucky to find that these days as more and more lenders stick to six months and below. The Halifax Bank have realised this and they have seen an opportunity to gain potentially a lot of new customers by offering a long term interest free period.

The new credit card that is being offered by Halifax, is giving you the chance to benefit from a period of 15 months interest free. That is absolutely fantastic and it is certainly going to get quite a few new customers queuing up to get one. The usual interest rate on the card will be 14.9% which is still really good for a credit card.

The way that it works out is, if you purchase something in October 2007, you would not have to pay any interest on that purchase until January 2009. Now whilst this is fairly amazing, it can also cause problems by encouraging people to get into more debt than they usually would. For example, if you know that you do not have to pay anything back on the card until almost two years in the future, you would think that you had a long time to pay it off and you would forget about it. Also you may purchase something that you would not usually purchase because you think anything can happen in two years and you should be earning more money by then.

Overall whilst this new credit card is set to go down well with consumers, it is unfortunately likely to encourage higher debt levels.