JOHN RYDER acquires credit cards like others collect stamps. The 25-year-old currently has 15 in his wallet. But John only uses his Mint card offering 0% interest on both balance transfers and purchases until September this year.
He is a member of a breed of financially savvy consumers known as "rate tarts" who continually switch between 0% finance deals.
John, an account manager for a public relations firm, currently owes £5,000 on his plastic - but he is in the enviable position of having a debt that is interest free.
So he can stay one step ahead of the card companies, he keeps meticulous details on his laptop computer of when the interest-free periods are coming to an end.
But John may soon find it harder to keep swapping cards.
Many feel the days are numbered for the free 0% balance transfer credit card. The reason? People like John who switch balances between different issuers to take advantage of 0% introductory offers, are costing card companies a whopping £1bn a year in lost revenue.
A recent report from PricewaterhouseCoopers suggested card companies are becoming more selective about those they offer balance transfers to and are increasingly focusing on customer retention rather than winning new business.
And it went on to claim issuers may reduce the number of introductory deals they offer in a bid to combat the lost revenue.
This may seem a bit rich. With interest rates on some credit cards approaching 30%, and outstanding balances on 74 million cards approaching £60m, issuers are usually accused of exploiting feckless consumers who can't keep spending in check.
But the familiar story has taken an unexpected twist. Card companies are now complaining they are losing money at the hands of "rate tarts", many of whom are as skilled as John at exploiting the boom in 0% deals to switch their debts around.
An increasing number of customers are even using the money to earn interest in savings accounts or to save on repayments on special current account or offset mortgages.
John has money he has been "given" in this way sitting in a number of high interest savings vehicles. "To keep your custom, card firms will often send out blank cheques offering you cash interest-free for a set period. I just fill them out, put the money into a savings account for six months or whatever, and keep the interest.
"At the end of the interest-free period I pay the money back, but in the meantime I have made it work for me."
