4 January 2011

Compare Loans to Consolidate Debts

Following the festive expense the nation is being urged to compare debt solutions. Find out more how a balance transfer could help you save money.

A total debt of £2.8 billion is set to be shifted onto new credit cards this year according to latest figures.

As over 2.8 million credit card holders look for ways to manage this debt, the research by Santander Credit Cards indicates Brits are keeping a close eye on their finances as the average balance transfer is at a low £1,015. This figure has fallen since the end of 2008 when it was £2,290.

The research suggests that although the average balance transfer is smaller than it was in two 2008 and 2009 this debt was incurred some time ago, as 3.6 million admit to still be paying for Christmas 2009.

"Our research shows that millions of people are switched on to the benefits of transfer offers and are choosing to take a proactive approach,” said Ian Coles, Santander Cards' director.

"January can be a particularly tough time financially, which is why we encourage consumers to keep a close eye on their finances.”

The younger generations are the most keen to manage their debt through balance transfer, with 41 percent of the 18-31 year-old group with an outstanding balance on their credit card planning on transferring this in the New Year.

This is compared to only 14 percent of the over 55s who intend to do the same thing, with those who will transfer their balance moving on average £1,296 to their new card, more than the 18-34s' £923.

Men were shown to keep a closer eye on their finances with 37 percent with an outstanding balance intending to more this to another card, compared to 25 percent of females.

Women intend on shifting an average of £1,151 onto their new card in 2011, which is over 22 percent more than the £942 that men intend on transferring.

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