Britons switch £1.1bn a month on credit cards

02 April 2008

16,000 try to transfer credit card balance each month

The search for the ominous 0% balance transfer credit card deals is on as data from Sainsbury’s has shown that 16,000 Britons a month try to transfer their credit card balances.

The average amount transferred from one credit card to another currently stands at £1,555, however, 4.2% of those transferring balances try to move debts exceeding £5,000.

Sainsbury’s also found that the average 0% balance transfer period currently stands at 9.5 months with a third of deals lasting for just six months. This means that, once the balance transfer fee has been added, the savings to be had are pushed down.

Donald MacLeod, head of credit cards at Sainsbury’s, said “There is significant market for cards offering balance transfers as our research indicates that 40 per cent of card holders think it will take longer than one month to clear their current balance.

“Although there are a number of credit cards offering introductory 0% on balance transfers, there is a considerable difference in their duration so people need to choose carefully.”

The current market leader for balance transfers is the Virgin credit card which offers a 0% interest-free period on balance transfers for 15 months and a competitive typical APR of 15.9%. Click to learn more about the Virgin credit card 0% balance transfer offer.