Do You Have Credit Card Fatigue?

Credit card users are apparently getting fed up of chasing interest-free rates and are now looking a clear low rate of interest.

For the last couple of years I've been switching a home improvement debt from one 0% credit card to another, steadily paying it off at my leisure without paying any interest at all on what I borrowed. Result!

I've been fortunate in that each time I've been able to transfer the gradually diminishing balance to interest-free cards for introductory periods of nine months. It's quite a long introductory period although it's amazing how time flies and I find myself looking for yet another 0% card to switch my balance to.

So far, I haven't got bored with switching but it appears that people who've also been enjoying the benefits of interest-free borrowing are beginning to get fed up with the process of applying for a new card every few months.

According to research from Capital One, of the five million people who have switched balances between credit cards to get a lower rate, half have not bothered to transfer again - partly because they found it too much hassle.

Not surprisingly, credit card companies are picking up on this - probably gratefully actually, since 0% credit cards reputedly cost the industry more than £80 million a month. While the interest-free card has proved to be a highly successful method of attracting new customers, it's not exactly a money-spinner - which is why some companies have recently been introducing a fee for balance transfers.

Although Capital One predicts that 0% cards are here to stay, they say there is a growing number of customers who want cards that charge permanently low flat rates of interest so that they don't have to continually switch providers when introductory periods expire.

However, be careful when looking for these low flat rates. Capital One's own No Hassle card may charge just 6.9% for balance transfers and purchases but purchases should be avoided as interest is charged from the date you buy something if the account isn't cleared in full every month.

If your aim is to actually pay off your credit card debt then its Platinum Mastercard would be a much better bet as the charge is only 5.9% until the balance is paid off completely. Similarly, Morgan Stanley also charges 5.9% for the lifetime of the balance while Citi Platinum Visa's rate is even better at 5.8% (All of these are available via the Fool)

For people juggling multiple cards, sticking your combined debts on to one low rate card certainly makes it easier to track your finances. But, as ever, beware of the small print.

Get a great deal in our Credit Card Centre.