Credit card transfers ‘planned by consumers’
Around 4.3 million consumers are planning to transfer the debt from their credit cards to new providers, new figures suggest.
Such consumers, who may also have loans or mortgages, are planning to move £6.68 million of debt over to new credit cards to take advantage of the 0 per cent offers on balance transfers, research from Sainsbury's Bank has discovered.
According to Donald MacLeod, head of cards at the bank, some consumers may not be able to pay off their credit card this month and could incur interest as a result.
"It's not surprising that 0 per cent balance transfers 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 be spending less on their credit cards, findings from Moneyextra.com revealed recently.
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