With more 0% transfer credit cards hitting the market this customers experience is well worth considering before signing up.

Paul Williams took out a 0% balance transfer card with MBNA, like many he took the card out to assist with debts and try to sort out his finances.

The popularity of the 0% balance transfer cards is high because they offer a set period of time where no interest is charged. Customers transfer their balances paying usually a 2-3% fee and try to clear their debt within the set period, therefore saving on interest charges.

The card Mr Williams had offered 12 months interest free, after taking the card out he set up a direct debit for the minimum £5 monthly payments but his bank changed this to £10. Mr Williams was unaware of the increase so underpaid by £5.

The provider charged him £12, withdrew his 0% facility and charged him £170 for interest on his current balance.