By Elliot Wright, 4th January 2010
Over £3.2bn will be shifted between credit cards in the first
three months of 2010 as more than 4.5m Brits take advantage of
introductory balance transfer periods, according to Santander
Cards.
The number of people intending to make a credit card balance
transfer has risen by a third compared to this time last year, as
borrowers seek to take control of their finances more
effectively.
However, there has been a fall in the total amount of debt being
transferred, from over £7bn a year ago, as record levels of
unsecured credit is being paid back.
The research found that cardholders planning a balance transfer
in the New Year will transfer an average sum of £1,140, compared
with £2,290 in 2009. Those over 55 years old are least likely to
transfer balances between credit cards, with just five per cent
planning to do so, compared to seventeen per cent of those under 55
years old.
The research found that cardholders
planning a balance transfer in the New Year will transfer an
average sum of £1,140.
Emma Roberts, Director at Santander Cards, said: "The number of
people transferring balances has risen year on year, whilst the
amount being transferred has fallen dramatically; this is a clear
sign that consumers are becoming savvier when it comes to managing
their finances. It's encouraging that so many Britons are planning
to take control of their finances in the New Year by transferring
an outstanding credit card balance to a 0 per cent deal."
The research also highlighted considerable regional disparities
when it comes to New Year balance transfer plans. Those in the
South East of England will be shifting the largest balance
(£1,807), compared with those in the North East who will transfer
an average of just £149. Interestingly, the North East also has the
lowest proportion of switchers, with just eight per cent planning
to shift their debt to a new card. In contrast, 34 per cent of
borrowers in Northern Ireland are planning to switch their balance
in the New Year.
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