Abbey Zero card has no balance transfer fee

Around one in four credit card holders (22 per cent) will take advantage of a zero per cent credit card over the next 12 months according to research from Abbey Credit Cards. The figure has increased from 19 per cent since the post Christmas period, traditionally the busiest time for balance transfers.

As British consumers face the toughest economic conditions in many years, the new research suggests that people are turning to balance transfers to give them extra flexibility to meet their outgoings. Young people are most likely to be taking advantage of zero per cent credit - one third of 25 to 34 year olds (34 per cent) will be transferring a balance from another credit card or their overdraft.

The research found that the average amount being transferred has fallen slightly from £1,711 in the post Christmas period to an average anticipated amount of £1,604 over the next 12 months. The largest amounts will be transferred by those aged between 35 and 44 years - an average estimated £1,996 over the next 12 months.

Callum Gibson, Head of Abbey Credit Cards commented: "The research suggests that balance transfers are providing much needed flexibility to cardholders at a time when many are feeling the pinch. If people are planning to transfer a balance, they should study the small print as fees for transferring balances can sometime cancel the savings made.

"The Zero Card is a perfect card for anyone looking to transfer a balance, as you'll avoid average of £48 in BT fees charged by the majority of 0 per cent cards."

Men are slightly more likely to be planning to transfer a balance than women (23 per cent and 22 per cent respectively).

Men were planning to transfer an average of £1,708, compared to women who planned to transfer an average of £1,480.

Those living in the Midlands were planning to transfer the heftiest balances - an average of £1,914.