This week Abbey has launched a new credit card that will allow consumers to enjoy lower and fewer fees. The Zero Card enters the market at a time when many lenders are cutting back on financial products that cannot stand the pressure of the credit crunch.

The launch of the Zero Card earlier in the week coincides with reports that customers in the UK continue to be hit by the rising costs in increased fees and charges over the past two years, according to a recent report.

The hike in credit card fees and charges has put a strain on financial management in many cash strapped households and industry officials say the average purchase rate on a credit card has jumped from 14.9% in April 2006 to the latest figure of 16.4%.

An official from the Abbey described the Zero Card as innovative, stating: “We promised the market that we would continue to innovate and that is exactly what we’ve done.”

The card is likely to be popular among those seeking to spend their holidays abroad, as it will not charge any foreign exchange fees. Abbey says there will be no balance transfer fee charged with this deal, and for the first six months there will be no cash advance fee charged either.

The launch of Abbey Zero card is fantastic news for consumers shopping for a short-term balance transfer deal and also those who are planning to go abroad on holiday this summer.

With the economy under pressure, many consumers are always searching for a credit card bargain mainly because the cost of borrowing has sky rocketed. Lenders are increasingly competing against each other with new credit card deals launched nearly every other month to attract customers. The Zero Card enters the market at a time when many lenders are cutting back on financial

It is becoming even more difficult for people with poor credit and those on low income to secure an affordable deal on a credit card. This means that only those with good credit can exploit the various credit card deals offered by lenders.

The new Abbey card could prove popular in the market because it offers ten months of interest free credit on balance transfers and purchases in comparison to other lenders who offer an equal interest free period on purchases and balance transfers but only for a far shorter period, such as six months.

The Zero card  can be compared to the Halifax All-in-One card which offers consumers a good deal in a market where as many as five million people are struggling to make repayments.

The Abbey card couldn’t have come at a better time when many lenders are looking to drop their struggling customers and some of them go as far as reducing the customer’s credit limits.

The market offers other options available to those interested in longer periods on balance transfer cards without an equal interest free purchase period. Market analysts also believe that a combined substantial balance transfer period and purchase period will appeal to anyone interested in making purchases without fear of racking up interest charges on their spending and existing balance.

Officials from Abbey have described the card as innovative, and state that consumers can benefit in many ways with this credit card, which could save some card users a small fortune in interest, fees, and charges.

However, the card also offers a range of other valuable benefits. For example, for the first six months cardholders will not be charged cash advance fees when taking money from a cash point with the card. After the first six months the rate for cash advances will be 25.9%.