Cardholders have not chosen the best deal

It is estimated that almost 7million people will pay far more than they should to cover credit card debts accrued over the Christmas period.

Financial website moneyexpert.com conducted research and results show that 6.6million people are not going to move to a cheaper credit card deal (many of which offer 0% on balance transfers) regardless of paying 16.8% interest (on average).

The site’s experts consider this a missed opportunity and strongly recommend credit card holders to rethink their position and consider shifting their balances to a card offering a better deal so they do not cripple themselves in debt as the year rolls on.

It is true to say that lenders have become more selective with their 0% balance transfer offers, however, this should not put consumers off trying to switch to a better deal.

Questions in the survey include whether consumers had accrued debts over the Christmas period and whether or not they had plans to swap them to a new card.

7% (which is equivalent to 2.6million) people stated their intention to take action to resolve their current debt, whilst 8% have no intention of making any changes to their current situation.

For some people this could mean paying rates of up to 39.9% (which in reality would be £798 interest on top of a £2,000 debt.)

Moneyexpert are concerned at how many millions of people are unwilling to take steps to rectify this situation, and will in many cases continue to add to their ever-increasing mountain of debt. On the other hand, they commend those taking positive steps to minimise their charges/interest payments.
 
The survey also showed that the most common age range of people most likely to start the new year with a credit card transfer are those in the 25-34 age bracket. Out of this group surveyed, 13% have plans to move their debts in January.