Millions of UK consumers are planning to switch their credit card debts over the next few months, according to recent research.
Figures from Sainsbury’s Bank show that more than four million people intend to change their credit card provider before the end of June in the hope that they secure a more favourable repayment deal.
In total, as much as £6.68 billion is expected to be switched from one credit card provider to another over the same period as consumers aim to find a solution to their debt management problems.
Sainsbury’s Bank also reports that there are close to five million people who have outstanding credit card debts but are not currently paying any interest on these amounts.
“It’s not surprising that zero per cent balance transfers are popular,” said Donald MacLeod, head of cards at Sainsbury’s Bank.
Earlier this week, MoneyExpert.com reported that the number of credit cards that have a cap on the balance transfer fees they charge are “dwindling dramatically” around the country.