A quarter of UK card holders have transferred credit card balances

According to information from a recent study around twenty five percent of credit card holders in the UK have, over the past year, transferred a credit card balance onto another balance transfer or cheaper credit card.

According to Moneyexpert research over six and a half billion pounds has been transferred with around eight million people taking the time to transfer a high interest credit card balance onto a card that offers an a cheaper rate or interest free period on balance transfers.

Research also showed that those most likely to be transferring a balance from a high interest credit card onto a cheaper or interest free card were those aged between thirty and fifty years of age, and according to statistics around seven percent of this age group have transferred five thousand pounds or more. This compares to two percent of those aged between eighteen and twenty nine and those aged above fifty.

The Chief Executive of Moneyexpert stated: "It is yet more evidence of the UK’s debt culture that so many people have balances of more than £5,000 on their credit cards." He added: "While it is heartening that people are getting the message and taking advantage of balance transfer offers from other providers, customers need to remember that switching balances should also mean cutting debts. Changing to another card shouldn’t be seen as a licence to carry on spending."

Cosnumers that intend to switch their balance from one credit card to another should make sure that they compare different deals, and should also keep an eye on balance transfer fees, which can vary from one card issuer to another. There area few free balance transfer cards on the market too, which should prove a cost effective choice for those wishing to transfer their balances.

Alisdair Milton
19th December 2006

More Information:

• Quick Balance Transfer Guide
  Balance transfers allow card holders to transfer the money they owe to their existing credit card to another, usually at a special rate of interest. The new credit card company pays off the old credit card debt and transfers it to the new card. This article will tell you how to play the game.
• The True Cost of Balance Transfers
  Balance transfers are a great way to consolidate credit card debts into one place, especially when there are many 0% deals available. However, there are hidden costs.
• Successful Stoozing: A Guide
  The introduction of 0% balance transfer deals brought a new financial practice which allowed people to use those deals to make money. The practice is known as 'stoozing' and it is closely related to credit card jumping. The difference is that successful stoozers have to be debt free, otherwise any gains made by stoozing will be lost in paying interest on credit cards.
  

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