According to new figures, nearly nine in ten of those with credit card debt (87%) face an average debt of £2,400.
It suggests many who’ve added to their debt over the festive season will be paying it off for months to come. Nearly half (47%) expect to still be paying off this year’s festive debt when next Christmas rolls around, and 6% say they can’t ever imagine being debt free.
Research by uSwitch.com found that one in 10 (10%) expect to start the New Year more reliant on their credit card than before the festive period and that over two thirds (67%) of those with credit card debt are concerned about it.
Many will want to get some breathing space by moving existing debts to a card that charges 0% interest on balance transfers.
Shifting the average debt of £2,400 to a 0% balance transfer card could save £380 over the course of a year in interest fees alone, even after paying an average transfer fee.
The longest free balance transfer period currently available (31/12/15) is 39 months with MBNA, but there is a transfer fee of 2.98% of the balance.
Halifax has just pitched in with a 38 month transfer period, with a fee of 2.75%. For those looking to avoid a transfer fee, Halifax is also offering a 23 month card with no charges for transferring a balance, making it the longest fee-free offer in the market.
Nicolas Frankcom, money expert at uSwitch.com, said: “Balance transfer cards with an interest-free period could be a lifeline for those needing some breathing space from debt. Those looking to transfer should do their research to find the right card by looking carefully at any transfer fees, not just the length of the 0% offer.”
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