One in four people are intending to transfer debt between credit cards during the coming year in order to benefit from a 0% interest deal, according to a new study.

The report released Tuesday by high street bank Abbey shows that those likely to take advantage of the 0% interest deal are aged between 25 and 34. Additionally, 34% of respondents are anticipating transferring their credit card balance to a new card in the next 12 months.

The bank also says that an estimated 22% of people are likely to exploit one of the introductory offers in the coming 12 months and are expected to transfer an average of £1,604 each.

However, the new figures suggest that although the average balance has slightly dropped from £1,711, the number has gone up from 19% of people who planned to shift their debt to a new credit card after Christmas, traditionally the busiest time for balance transfers.

Callum Gibson, head of Abbey credit cards, said: “The research suggests that balance transfers are providing much needed flexibility to cardholders at a time when many are feeling the pinch.”

On the other hand, a forecast by financial website MoneyExpert.com suggested that the saturation of 0% interest deals on the market could result in a drop in balance transfer fees.

According to industry sources, the transfer fees now standing at nearly 3% could be the latest incentive to be used by credit card providers trying to attract customers.