Thursday, January 7, 2010
Category:
Consolidation
According to Santander Cards, 10 percent of Britons are intending to take advantage of introductory balance transfer periods during the first quarter of 2010 – by moving over £3.2 billion pounds between credit cards.
It has also been revealed that the number of people who are intending to transfer a credit card balance has increased by a third since this time last year.
Despite these findings, the research also uncovered that the total sum of debt being transferred has fallen from over £7 billion a year ago. This New Year will reportedly see cardholders transferring an average sum of £1,140 compared to the average sum of £2,290 last year. It was found that those under the age of 55 are most inclined to make credit card transfers at 17 percent, whereas this figure stands at just 5 percent amongst those over the age of 55.
Director at Santander Cards, Emma Roberts, said: "The number of people transferring balances has risen year on year, whilst the amount being transferred has fallen dramatically; this is a clear sign that consumers are becoming savvier when it comes to managing their finances. It's encouraging that so many Britons are planning to take control of their finances in the New Year by transferring an outstanding credit card balance to a 0 per cent deal."
In terms of a geographic divide, the research showed that the largest average balance will be transferred by those living in the South East of England at £1,807. In contrast, an average balance of just £149 will be shifted by those living in the North East.
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Homeowners who face multiple credit card bills each month could consider consolidating these debts with a
secured loan. One of many finance options available, a secured loan for debt consolidation could allow borrowers to reduce several existing monthly repayments down to just one. This single monthly repayment could even be lower than the sum of current outgoings, thus freeing up useful money each month. However, if opting for a secured loan to consolidate debt, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
