The rising interest rates for cash transactions and increasing cautiousness of credit card lenders has led to the decline in the number of interest free credit card balance transfers, research from a financial websites has suggested.

The average balance transfer fee is now seen at 2.92 percent with the number of 0% deals offered declining from 80 last year down to 52 this year.

The study attributes that the average term length of zero per cent balance transfer deals has dropped from last year to 9.7 months and the interest payments on cash advances increased to 26.01 per cent.

Andrew Haggar, from the website, said: “With bad debts causing a real headache for most credit card lenders, it’s no surprise to see that the number of interest free balance transfer deals has started to decline”.

Andrew Haggar also added that it is not just the total number of zero per cent balance transfer cards that have fallen away, but everyone has also witnessed the number of longer term (one year +) offers chopped too.

The interest payments on cash advances have also increased substantially as compared to 2005 when the rate was 19.04 per cent it has changed to 26.01 per cent.

Mr. Haggar said: “Zero per cent balance transfers still make financial sense if used correctly, and if you have a spotless credit record you may still be able to play the tarting strategy for a while longer.”