Consumers planning to shift £2.8 billion of credit card debt in 2011
Consumers planning to shift £2.8 billion of credit card debt in 2011
- Wednesday, 5 January 2011More consumers are planning to shift their
credit card debt onto a new card with lower interest rates.
That is according to Santander, which found that £2.8 billion worth of
credit card debt will be transferred onto a new card by the end of the year.
Using a balance transfer card could help consumers become debt free faster as these cards may have zero per cent interest rates, meaning that the debt will not accrue any additional charges.
Santander also found that the amount of debt that consumers are planning to shift is less than that in 2008, which was £2,290.
The bank revealed that the 2.8 million credit card holders who intend to shift their debt will transfer an average of £1,015
It was also found that 1.5 million of those intending to shift their
credit card debt plan to do so within the next three months.
Ian Coles, director of Santander Cards, said: "The fact that the average amount being transferred has fallen considerably over the past couple of years would suggest that consumers have reined in their spending and that credit cards are being increasingly well managed."
First direct recently found that 83 per cent of Brits regret how much loan and
credit card debt they have.

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