Cardholders plan £9bn switch

Credit cardholders intend to move almost £9 billion worth of debt in the first quarter of 2008 by taking advantage of balance transfer deals, the findings of a new survey have revealed.

The study, commissioned by Abbey, discovered that more than three million borrowers plan to move credit card balances, with the average amount they want to transfer £2,666.

Roger Lovering, managing director of Abbey Credit Cards, said the figures were a positive sign that consumers are taking steps to get their finances in order and ensure they are paying less interest.

He added: "January credit card bills can often catch people by surprise, so we would encourage people to … plan ahead to ensure they aren't paying over the odds for their plastic."

Switching to a lower or zero per cent interest deal can help borrowers to save money, but Samantha Owens of personal finance website Moneyfacts.co.uk recently advised consumers to think carefully about the impact of balance transfer fees, as many lenders have increased them in recent times.

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