Credit card providers are working to counteract the effects of the 182 products that are offering 0 per cent on balance transfers.

The credit card market, which is said to be reaching its saturation point in terms of its 0 per cent balance transfer deals, will be using lower transfer fees to entice new customers, despite the credit crunch.

Several card providers, one of which is Barclaycard will use lower transfer fees to encourage new customers. The firm has reduced their fees from 3 per cent to 2.5 per cent.

Balance transfer fees on 0 per cent interest credit cards, have risen considerably; from 1.7 per cent January 2007, to 2.4 per cent in this month. Seventy five per cent of the market now provides 0 per cent deals on balance transfer.