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Expert: Nought per cent balance transfers a thing of the past

It will be "very hard to come by" interest-free balance transfers in future months due to the current credit crunch, the National Debtline has said.

Beccy Boden-Wilks, a spokesperson for the telephone helpline for people with debt problems, explained that in the period of cheap, accessible credit "people would just keep doing nought per cent balance transfers."

Now, however, they are "looking around for another one and being refused or just finding those deals aren't available".

The difficulty of managing large amounts of debt as cheaply as before is one of the major implications of the credit crunch, added Ms Boden-Wilks.

She also asserted that many people cannot manage their non-priority debts, such as credit cards and personal loans, anymore and as a result "stop paying their mortgage as well".

On a more positive note, she claimed that for those with "squeaky clean credit rating" there are still some reasonably good deals.

According to research by Sainsbury's Finance, 716,600 people will try and transfer around £1.1 billion a month between credit cards in 2008.