£6.5bn credit card debt shuffle

According to moneyexpert.com, the average amount transferred in a credit card debt transfer is £763.99 as consumers seek to take advantage of offers.

However, 1.4 million people have transferred a total of £5,000 or more, with some paying as much as £150 for the privilege in balance transfer fees.

Scots are the most likely to be hit by such charges, with an average credit card debt transfer of £1,110.39 and eight per cent have moved over £5,000, double the proportional average for the UK as a whole.

Sean Gardner, chief executive of MoneyExpert.com, welcomed the debt management options this can bring, but warned: “It is yet more evidence of the UK’s debt culture that so many people have balances of more than £5,000 on their credit cards.

“While it is heartening that people are getting the message and taking advantage of balance transfer offers from other providers, customers need to remember that switching balances should also mean cutting debts. Changing to another card shouldn’t be seen as a licence to carry on spending.”

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