Example: Jake's interest savings
Jake had a credit card with a £5,000 balance and an interest rate of 19.99%. By only making minimum payments on this card, he would be charged around £955 in interest for the year.
Jake decided to switch to a card that offers a low ongoing interest rate of 12.99%, meaning he could save around £354 in interest over the course of the year. He could save even more money by making larger repayments. Jake would also be able to avoid interest charges completely if he transferred the debt to a 0% balance transfer card and paid it off before the end of the introductory period.
* This is a fictional, but realistic, example.