Urgently shift card & loan debt, energy (calc, fixes, prepay, solar, Bulb) update, 9 p Mini Cheddars, cheep pet insurance, 2 desig ner specs £25

Martin's warning
Check NOW if you can cut credit card and loan interest - rates may be about to get worse quickly!
Shift cards to 34mths 0%, loans to under 3%

UK interest rates are expected to rise again tomorrow (Thu) for the sixth successive time. The current 1.75% base rate may go up as high as 2.25%, which'd be the highest rate in fourteen years.

Naturally, news attention will again turn to the immediate effect - rising rates for those on variable rate mortgages (look at our mortgage best-buy comparison & free Remortgage guide to see if you can cut your costs now).

Yet I want to focus on a less well-flagged impact, on cards and loan debt - which the UK base rate doesn't move as directly, but does set the mood music. We're already starting to hear a soft under-chant that deals may get worse quite quickly. So if you need to sort yours out, sooner is safer...

Can't afford to clear your credit card?
You can't afford not to check for a...
0% BALANCE TRANSFER

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)...

- Use an eligibility calculator before applying. As each application marks your credit file, use a 0% Eligibility Calculator which shows your acceptance odds for each top card, so you can home in on the one you're most likely to be accepted to (links below for a calc for each card) without any creditworthiness impact.

- Aim for the lowest fee with a 0% long enough to clear your debt. Many balance transfer deals charge a one-off fee of the amount of debt you transfer, so minimise that. UNSURE? Play safe & go long.

As Patricia emailed: "Hello Martin, some feedback and big success. I was approaching the end of my 0% and was not sure how to avoid the 20% APR. Did the Eligibility Checker, received the Santander no-fee card, saved myself the stress of £1,940 in interest. I now have 18 months 0%, which I plan to clear in 14 months. Thanks so very much."

How likely are balance-transfer rates to get worse soon? Six months ago, many top deals also paid switchers cashback to cover the fees - yet we last saw one of those in July. Plus Amex, Barclaycard, Virgin and others have hiked their standard APR rates.

Now we hear rumblings that as cards are less profitable for lenders, 0% lengths may get shorter and transfer fees could rise. There's no way to know, and there could always be an outlier launched to grab market share, but if you need to sort it, sooner is likely safer.

ALWAYS follow the balance transfer golden rules. Getting the right card is only the start point, then you need to use it right...

- Clear debts or shift the card again before the 0% ends, or you'll end up paying the usually 20%+ interest rate.
- Never miss the minimum monthly repayment. Or you can lose your 0% rate. It's best to set up a direct debit to cover at least the minimum (then manually overpay on top).
- Don't spend or withdraw cash on these cards. That isn't usually at the cheap rate and it's best to avoid new debt anyway.

Full help in Best balance transfers (and see APR examples). Now let me answer some questions I'm often asked about balance transfers.

Q. Is it worth applying if my best eligibility odds are, say, only 20%? If this is important to you (and unless you're soon about to apply for a mortgage, cutting debt costs should be), go for it. While 20% odds are low, it means we estimate two in ten who apply in that case will succeed, and it could be you. And if you're rejected, barring a minor application mark on your credit file, you're no worse off.

Q. What if my credit limit isn't big enough? The application is now on your credit file anyway, so make use of it. Use the new card to shift as much debt as you can to cut costs. Once that's sorted, you can use our 0% Balance Transfer Eligibility Calculator again to see your chances of acceptance for other providers' cards. Though try to spread future applications out, as too many in a short space of time can hurt.

Q. Can I shift debt to my existing cards too? Yes and it's worth looking at. Some cards will give existing cardholders special offers (eg, 12mths 0% for a 3% fee), not as good as new customer deals, but useful, especially as it won't usually go on your credit file.

Even if you don't get a special rate, try and move all your debt to where it's cheapest. For example, if one is 18% APR, another 30%, ask the 18% card if you can shift debt from the other to it, it'll help. For a full step-by-step, see the credit card shuffle for how this all works.

Q. Should I try and pay off my biggest debt first? No. Focus all spare cash on clearing the highest APR debt - as that's growing most quickly - and just pay the minimum on all others. If you've an overdraft, include that too, as most are 40%, so clearing those is the priority. Once the costliest is clear, shift focus to the next highest APR, and so on.

With rates under 3%, to cut existing loan costs check today's
CHEAPEST PERSONAL LOANS

Everyone with a loan, especially costly ones a few years old, should check if you can find a new one at a lower interest rate. If you can, then you may be able to use it to pay off your existing loan - but don't jump in with both feet, a lower rate isn't always enough, as your current loan may have repayment penalties. Here are my three steps to work it out...

Step 1: Get a 'settlement figure' from your lender. This is the remaining debt plus any early settlement charge (max two months' interest). It may be available online - if not, call up the lender and ask. This is then the amount you'd need to borrow from the new lender to pay off the existing loan (unless you've any savings to add to it).

Step 2: Find YOUR new top rate for that amount. The best-buy rates are below, but acceptance is key, so first use our Loans Eligibility Calculator to see which you've the best odds of being accepted for. That way you can home in on the most likely deal before applying (and reduce multiple applications, which hurts your credit file).

Most loans are representative APR, which frustratingly means only 51% of accepted customers get the rate. The rest can be charged more, without limit. You're sadly often only told the actual rate after applying. Even our eligibility calc mostly must work with representative APRs (though we're trying to get more guaranteed rates).

Step 3: For the BIG reveal, use our loan switching calculator. Plug the old and new loan details into our nifty loan-switching calculator. If it shows you can save, apply, then if accepted at the right rate, use the new loan to pay off the old one. The lower monthly repayments will free up cash (better still, repay quicker and save even more interest).

Do pay on time though (best by direct debit) or you may be charged late fees and see missed payments on your credit file. Full info & help in Cut existing loan costs (APR examples).

Looking for a new loan? This is mainly about switching loans. If you're looking at new lending, be careful. Use the route above to find the loan, but make sure you only do it if NEEDED, you've done a budget and the repayments are affordable. And do try to minimise the amount you borrow and repay as quickly as you can. If in doubt, don't.

How likely are loans to get more expensive in the future? A year ago a good number of lenders were offering rates down to 2.8% for larger amounts, two months ago there were four at under 3%, today there's only one of those left.

Loan rates are more closely related to long-term interest rates than cards, so barring the odd anomaly for competitive purposes, the best bet is rates will continue to rise.

Q. You mentioned credit card loans are usually cheaper for small borrowing - what are they? Good question, I almost forgot to explain... if you need to borrow for something you can pay for on plastic, a 0% purchases card is the cheapest way to go. If not, and you need a cash loan or are paying off, say, money owed to a friend, then the key is a much less well-known credit-card loan, or more technically, a 0% money transfer card.

Here, for a one-off fee, the card shifts money into your bank account, so you owe the card for it, but at 0%. These cards are complex, so do read the full guide. As for finding a card, no surprise, I'd say go via our 0% Money Transfer Eligibility Calc - right now, the top deal is 18 months 0% for a 2.99% fee.

As Chris emailed us: "I took out a loan with my bank in 2019 for £13,000 with 12.2% interest. I now realise it was silly, but it bought me time. I researched your best deals for early loan repayments and went for a 0% money transfer with a £150 fee. I've saved £798 interest and will repay 13 months quicker. Thank you for the excellent advice."

It might not be easy to solve your debt problems, but there's always a route
FREE DEBT CRISIS HELP

The help I've written above are aimed at those who are finding their debt (just about) manageable. If not, and coping with what you owe is a struggle, then there's an entirely different route. And it's important to be honest with yourself about which camp you're in, as get it wrong and debt can spiral out of control. So let me ask you three questions?

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

If you answer "yes" to any of these, forget the solutions above. Instead go to our Debt crisis help guide, or even better, get free, one-to-one debt counselling help from Citizens Advice, StepChange or National Debtline, and if you need emotional support, try CAP instead. You may also find the MSE Mental Health & Debt guide useful.

All these agencies are there to help, not judge. The most common feedback I get after people go is: "I finally got a good night's sleep." Give it a try :)