Many credit card users in the UK, are transferring their balances from high interest rate cards, to zero per cent rates; despite the present credit crunch.
Recent research indicates that almost three quarters, of a million people are trying to transfer, around one billion pounds worth of debt, every month by switching credit balances. The credit card users are doing this in the hopes, of saving money that they would have used to pay on higher interest rates.
One official that was involved with the research said: “There is a significant market for cards offering balance transfers as our research indicates that 40% of card holders, think it will take longer than one month to clear their current balance.”
However people looking to transfer their credit card balances, are being advised that the credit crunch will make it more difficult to get the card with the rates, they are after.
Moreover, zero per cent credit cards, that once offered a limit on their credit transfer fees, no longer offer this facility and so transferring may be more costly than initially perceived.
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