£6.7bn credit card transfer

Britons are expected to make credit card transfers worth £6.66 billion as they search for 0% deals.

On average, £1,555 will be switched, but some 95,000 will transfer credit card debts of over £10,000, according to data from Sainsbury’s Finance.

Regionally, people in the south-west and south-east were marginally more likely to switch balances, while the under-34s were most likely to switch.

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 estimated million people with 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 balance transfer card it's also worth considering any purchases you may make and ensure that they are also covered by a 0% period."

Despite the demand, the credit crunch is maker lenders less willing to provide introductory discount rates – and only 21 per cent of all cards offer 0% transfer deals, and most include some transfer fee.

However, a three per cent transfer fee still works out cheaper than a typical interest rate charged by a credit card.

In December, Brits spent £11.3 billion on their credit cards, according to figures from payments association Apacs.

The UK currently owes £223.7 billion in credit card debt, personal loans, and overdrafts.