Over £6.5 billion transferred in last year

December 19, 2006

More than £6.5 billion has been transferred across credit cards over the past 12 months, with around one in four cardholders switching their debts to other cards as they try to cut costs, new research reveals.

According to the study by MoneyExpert.com, the average customer moves £760 of debt when making a balance transfer.

However, around four per cent of card users, or 1.4 million people, have transferred debts of £5,000 or more, leading to an average charge of £105, with typical transfer fees at 2.1 per cent.

People between the ages of 30 and 50 are the most likely to have transferred large balances, with around seven per cent of these people moving £5,000 or more, compared to two per cent of both 18 to 29-year-olds and over-50s.

Sean Gardner, chief executive of MoneyExpert.com, said: "It is yet more evidence of the UK's debt culture that so many people have balances of more than £5,000 on their credit cards.

"While it is heartening that people are getting the message and taking advantage of balance transfer offers from other providers, customers need to remember that switching balances should also mean cutting debts. Changing to another card shouldn't be seen as a licence to carry on spending."

People in Scotland have reportedly moved the largest amounts of debt, with average transfers standing at £1,110.