Zero per cent credit card deals 'unpopular'

13/03/2009

Britain's credit card holders are needlessly paying out over £9 billion a year, because they can't be bothered to switch to a best-buy deal.

Abbey's study also showed that a clear majority (two in three) of consumers have one or more credit cards - and hold a debt in excess of £3,250 on them.

However, just 23 per cent of the total debt was found to be held on a zero per cent deal at the moment, which means that the other 77 per cent might be paying interest on their balances.

With credit card firms putting up their rates recently, this can lead to large extra payments for customers with high amounts owed.

Despite this heavy financial burden, just 19 per cent of Brits who had credit card debt said that they were currently planning to switch to a zero per cent deal in the near future.

Callum Gibson, head of credit cards at Abbey, commented: "By transferring an outstanding credit card balance to a zero per cent deal, Britons could save an average of £443 a year, a huge cost saving in today's difficult economic climate.

"At a time when people are having to manage their finances more carefully, transferring to a zero per deal is a sensible way of ensuring your money goes further."

Tags; Debt Management and Banking, Credit Card Lifestyle,

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