Credit card holder rather transfer balances

16/09/2008

New research shows that credit card holders in the UK are planning to switch balances from card to card rather than pay off their outstanding debts. ‘Rate Tarts’ as they are often referred to as, are doing this in order to delay paying off the balances on their cards and take advantage of the 0% deals available on various credit cards.

A survey carried out by the Abbey showed that nearly twenty-five per-cent of credit card holders will transfer an average of £1,600 to a different credit card in the next year.

Those aged between thirty-five and forty-four years are most likely transfer the largest amounts, and men will be more likely to transfer larger amounts compared to women.

“The research suggests that balance transfers are providing much needed flexibility to cardholders at a time when many are feeling the pinch,” said head of Abbey credit cards, Callum Gibson.

The findings from the survey also suggested that people living in the Midlands are likely to transfer the largest amounts on average.