27 February 2008
British consumers are planning to take advantage of balance transfer offers in the coming months to help avoid paying interest, according to new research.
A survey by Sainsbury's Finance reveals that 4.3 million people have plans to transfer a total of £6.68 billion from one card to another before July.
The average amount that respondents plan to transfer is £1,555, the data reveals, with 181,000 people planning to move more than £5,000.
Donald MacLeod, head of cards at Sainsbury's, said that it was "not surprising" that balance transfer offers 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," he remarked.
Consumers may want to choose a card that includes a zero per cent interest offer on purchases as well as transfers, Mr MacLeod added.
In January, uSwitch urged consumers to consolidate debt, as 9.5 million had maxed out on at least one form of credit during the six previous months.