A report carried out by Sainsbury’s Finance has revealed that an increasing number of people are planning to switch their credit cards to one with a 0% balance transfer in a bid to avoid interest charges on their existing cards.

The figures show that up to 4.3 million cardholders plan to change their provider by July of this year so they are able to benefit from interest free credit which will allow them to repay existing debts. The report claimed that £6.68 billion was expected to be transferred onto a 0% balance transfer card by the summer.

A spokesman for Sainsbury’s Finance said, “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.”