Millions switch cards when 0% deal expires

| November 21, 2011 | 0 Comments
Millions switch cards when 0% deal expires

New figures from Sainsbury’s Bank suggest that nearly two million credit card holders intend to switch providers over the next year, when their 0 per cent balance transfer offer expires.

A further 900,000 card holders will switch when their 0 per cent purchase deal expires, according to the bank’s latest research.

After the introductory offer on these cards ends, the percentage rate charge rises to 18.2 per cent on average while the APR on new purchases rises to around 18 per cent, so it’s hardly surprising that customers chose to move their business elsewhere.

There are several cards offering a much more competitive rate including Sainsbury’s card at 6.9 per cent and Barclaycard at 7.9 per cent, while many customers are likely to take up a new 0 per cent balance transfer deal.

However, significantly fewer people will be using a credit card to pay for Christmas this year, according to new research by Legal & General.

Around a third of households paid for Christmas with credit cards last year, but this number is expected to drop to a fifth this year.

With increasing pressure on household incomes coming for all directions, a third of households are planning to spend less on gifts this year, according to the Money Mood survey of 1,000 adults.

Sixty-seven per cent said they had enough money put aside for Christmas, while in the London and West Midlands, just 60 per cent of people said they had enough money saved for the festive season.

People in the north of England are the best prepared, with 79 per cent saying they had saved enough money to pay for what they need, while in Wales and Scotland the figures fell to 72 per cent and 68 per cent respectively.

Tags: 0% balance transfer, , , Sainsbury’s Bank

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