Millions look to ‘switch their debts’

Millions of people around the UK are planning to switch their credit card debt from one provider to another during the next few weeks, it has been suggested.

Figures compiled by MoneyExpert show that as many as 2.6 million British consumers will look to transfer the credit card debt they accumulated over the typically busy and expensive festive season.

However, the financial comparison firm is keen to stress that switching providers could be costly, because balance transfer fees can be as much as three per cent.

“It is good to hear that people are taking action but worrying that millions will simply add their Christmas debt to their existing debt,” said Sean Gardner, MoneyExpert’s chief executive.

“Piling debt on debt is simply adding to the spiral of increasing financial trouble.”

Estimates from the UK’s payments association Apacs suggested that close to £11.7 billion worth of credit card debt was accumulated nationwide over the course of last month.