Money News

Brits to transfer £3.2billion of credit card debt

Monday, 4 January 2010 Writes Hazel Cottrell hazel.cottrell@consumerchoices.co.uk

Millions of people are planning to take control of their finances in the New Year by transferring their credit card debt to a new 0% deal.

Brits are preparing to shift more than £3.2billion between credit cards in the first three months of 2010, in order to take advantage of 0% balance transfer deals.

Consumers are becoming savvier when it comes to managing their finances.

This year the average balance transferred will be £1,140, compared with £2,290 in 2009, according to banking giant Santander.

Emma Roberts, director at Santander Cards, said: “It’s encouraging that so many Britons are planning to take control of their finances in the New Year.”

Around 4.5 million people are currently planning to transfer a credit card balance – this represents a rise of one third compared to last year.

However, the total amount of debt being transferred has fallen by more than half, as Brits have been paying of record levels of unsecured debt.

Roberts said the figures are “a clear sign that consumers are becoming savvier when it comes to managing their finances.”

Chris Eagle, commercial manager at Creditchoices.co.uk, said: “If you’re looking for a great 0% balance transfer deal, check out the Virgin credit card (www.virginmoney.co.uk).

“Its massive 16 month 0% balance transfer period can’t be beaten.”

Compare 0% balance transfer credit cards