Missing 0% credit card payment costs £278

Missing a single payment on a 0% balance transfer credit card can cost a staggering £278, new figures show.

And as well as incurring a massive interest charge, careless credit card holders can also lose all the introductory benefits to their card as well as potentially damaging their credit file - comparison service Moneysupermarket.com warns.

"Those on a 0% balance transfer introductory period may not be aware of the severe penalties a single missed payment can result in," said Rob Kenley, Moneysupermarket head of credit cards.

"These credit card holders could be stung with unexpected interest payments if their credit card is one of the 31 cards that automatically revert back to the typical APR after defaulting on one repayment."

Moneysupermarket reveals 62 per cent of 0% balance transfer credit cards automatically revert back to their typical APR if a payment is missed.

And on the average amount placed on a balance transfer credit card this could add £278 to the amount of interest credit card holders are charged.

But this is not the only potential consequence.

"People also need to be aware that failing to make a repayment could also have a negative effect on their credit profile," said Mr Kenley.

"This could make obtaining credit for everything from mobile phone contracts to mortgages much harder. Additionally, when they are accepted for a financial product it is likely they will be offered a higher rate."

But there is a simple way to prevent this from happening.

"To avoid missing any payments it is vital people set up a direct debit to repay the minimum sum required each month against their balance," Mr Kenley explained.

"They should also make additional payments whenever possible."