Friday, January 23, 2009
Category:
Consolidation
According to new research conducted by Abbey, over 3 million Britons (7 percent) look set to move in excess of 7 billion pounds between credit cards this quarter. This is expected as a result of people taking advantage of introductory balance transfer periods.
Those switching credit cards will transfer an average balance of over £2,000 between providers, as many of them make a start on their common New Year’s resolution to organise their finances. This particular resolution has become somewhat of a tradition for many Britons. During the same period last year, an estimated 8 billion pounds was shifted between credit cards.
The research revealed that Britons within the age bracket 25 to 34 are most likely to be intending to transfer their credit card balance in the New Year (15 percent). In contrast, those between 55 and 64 years of age are least likely at just 3 percent. Those aged 35 to 44, and 45 to 54, come in at 8 percent and 6 percent respectively.
In addition it was found that people in Scotland and Northern England are more likely to transfer a credit card balance (8 percent) than those in Wales and the South West (4 percent).
Callum Gibson, Head of Credit Cards at Abbey, comments: "The New Year is an ideal time for people to review their finances and by transferring a credit card balance to a card with a 0 percent introductory offer, consumers can ensure they are managing their finances as effectively as possible. As well as offering customers a 0 percent interest rate on balance transfers for nine months and purchases for three months, the Abbey Credit Card also pays 3 percent cashback on supermarket and petrol purchases for six months up to a maximum of £75³, helping consumers to make their money go further."
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Homeowners that are juggling multiple credit card repayments may want to consider combining their debts with a secured, debt
consolidation loan. This option would result in just one simple, potentially lower, monthly repayment. In addition, secured loans are repayable over a term to suit the borrower, from 5 to 25 years. However, it must be remembered however that repaying the borrowing over a longer term may increase overall interest charges.
