The amount of money being transferred to new credit cards during the first three months of 2010 will be down by more than 50 per cent compared with last year due to efforts to clear debt.
This is according to Santander Cards, which revealed £3.2 billion will be moved during the period – £3.8 billion less than in 2009 – as a result of British consumers paying back significant levels of debt over the past 12 months.
It was also shown that more people will transfer their credit balances this year to take advantage of special offers, a trend which director Emma Roberts said indicates that people are becoming “savvier” when it comes to debt management.
“It’s encouraging that so many Britons are planning to take control of their finances … by transferring an outstanding credit card balance to a zero per cent deal,” she remarked.
The figures were released following research from Abbey Savings in December, which showed Brits are saving 21 per cent more each month now than at the start of 2009.
By Chris Trimble