Money talks: Credit card companies clamouring for a slice of the transfer action

The marketeers at the credit card and loan companies have hit the ground running in the early days of 2011 as they seek to capitalise on a financial detox frenzy likely to prove short-lived.

It's a busy time of the year for lenders as they try to capture additional business from people looking to fulfil that New Year resolution to be smarter with their money.

In the personal loan market we have seen half a dozen rate cuts from high street lenders in the first week of 2011 alone. But don't get too excited, because, as has become increasingly the case over the past two years, most of the cuts are reserved for existing customers only and targeted at larger loans of around 7,000 plus.

If you're looking for a loan of around 2,000 to 3,000 the rates are untouched and in most cases remain well into double figures, with some lenders charging almost 20 per cent APR.

The most eye-catching deal I've seen so far is the 0 per cent credit card balance transfer offer from Barclaycard, sitting at the top of the best buy tables with a staggering 17 months interest free.

The Barclaycard Platinum card does charge a one off 2.9 per cent transfer fee, although it is currently offering a 20 rebate on this for anyone transferring 3,000 or more by the end of this month.

As you can imagine, in the current financial climate there is likely to be great demand for this card, but a quick read of the Barclaycard website reveals that this card won't be available to everyone.

To qualify you'll need a regular income of at least 20,000 a year, a four-year clear credit history, no missed repayments and you must be a new Barclaycard customer. Existing customers will not benefit.

If you do meet the criteria and you're struggling to shift the balance on your existing credit card, it makes perfect financial sense to take advantage of this offer. For example if you've got a balance of 3,000 at, say, an average rate of 18 per cent APR, transferring it to 0 per cent for 17 months would save you 654 in interest charges in return for a one-off 67 fee (including 20 rebate).

So while credit conditions remain tight, there are still some good savings to be made if you've got a decent credit record,

If you're not fortunate enough to be able to transfer to interest free and are struggling to clear your card debt, try to pay an extra 10 or 20 a month off your balance if you possibly can - you'll clear the balance years earlier and make a big dent in your interest charges in the process.

l Andrew Hagger is head of communications at Moneynet.co.uk.