Credit card customers 'plan to switch their balances'
Published On 26 February 2008
New research has suggested that people in the UK plan to transfer billions of pounds between credit cards in the coming months.Data released by Sainsbury's suggested that around 4.3 million people in the UK intend to transfer a total of £6.68 billion between credit cards before July.
Typically, consumers plan to switch £1,555 onto a new card. However, nearly 100,000 people told the lender that they would be switching over £10,000.
"It's not surprising that zero per cent balance transfers are popular, our research shows that there are an estimated five million people with outstanding balances who are not only incurring interest but also admit that it may take them longer than one month to clear their spend," commented Donald MacLeod, head of cards at Sainsbury's.
"When choosing a balance transfer card it's also worth considering any purchases you may make and ensure that they are also covered by a zero per cent period."
The study also showed that 35 per cent of credit card holders currently pay interest on their balances each month.
Recently, website MoneyExpert.com warned that the number of credit cards with "capped balance transfer fees is dwindling dramatically".
