£6bn to be transferred between credit cards over next six months
Sainsbury’s Finance, which has increased its interest-free period on balance transfers from 10 to 12 months unveils new research that reveals 4.30m people intend to transfer a total of £6.68 billion between credit cards before July, which equates to £257.15 million per week or £36.74 million a day.The findings also highlight that there are more than one in three (35%) credit card holders who are currently paying interest on their credit card balances.
Donald MacLeod, head of cards at Sainsbury’s, said: “It's not surprising that 0% balance transfers are popular, our research shows that there are an estimated5 million peoplewith outstanding balances who are not only incurring interest but also admit that it may take them longer than one month to clear their spend.
"When choosing a BT card it's also worth considering any purchases you may make and ensure that they are also covered by a 0% period. Our customers benefit from 0% for a whole year on their Sainsbury's purchases as well as earning Nectar points equivalent to 2% cash-back. Less than a quarter of cards offer 0% APR on BTs for 12 months or more and 0% APR for any period on purchases”
In terms of those people planning to transfer balances between credit cards over the next six months, Sainsbury’s Finance research findings reveal:
the average amount people plan to switch is £1,555;
181,000 people intend to transfer over £5,000, with 95,000 people planning to switch over £10,000;
the gender breakdown of those planning to transfer balances is 45.7% women and 54.3% men;
on an age basis, 35.5% of those planning to transfer balances are aged under 34 (1.528 million people), 21.7% are 35 – 44 (933,000 people) and 26.7% are aged 45 – 64 (1.15 million people) and 16% are aged 65 and over (691,000 people).
On a regional basis, 15% of people in the South West intend to transfer balances, which is the highest percentage for any part of Britain, compared with 5% in Wales and Scotland, which is the lowest.