LONDON, UNITED KINGDOM -- (Marketwire) -- 01/09/13 -- More than half of UK credit card holders say they would never consider doing a balance transfer on their credit cards, according to new research by Nationwide Building Society(1). By not moving their balance, people are not taking advantage of a useful way to manage their debt, and more importantly, could be missing out on significant savings.
In a survey of over 1,800 UK credit card holders, 53 per cent said they would never consider transferring their credit card balance to a new card. Yet, almost a quarter (24 per cent) would consider transferring a balance of up to GBP 2,000.
People who don't pay off their card balance every month could save by transferring their balance to a card with a lower interest rate. For example, the Nationwide Credit Card and Select(2) Credit Card both come with a competitive introductory offer(3) of 0 per cent for 20 months on balance transfers in addition to a range of other benefits including cashback(4), low APR and commission-free purchases abroad.
All balance transfers come with a fee attached yet, even including a fee of 3.1 per cent, a person could save GBP 172.25 if they transfer GBP 1,000 to a Nationwide credit card from another card charging 12.9 per cent APR. The saving increases to GBP 259.61 if transferring the same amount from a card with an APR of 18.9 per cent and GBP 343.03 from a card with an APR of a 24.9 per cent(5).
In addition, anyone now opening either of the Society's two credit cards via www.nationwide.co.uk will benefit from a 50 per cent discount on the balance transfer fee. The reduced fee of 1.55 per cent, along with the introductory offer above, is only available if the balance transfer occurs within the first three months of opening(6).
Paul Carvell, Nationwide's head of credit cards, said:
"The New Year can often bring with it the stress of how to manage debt racked up through Christmas-related expenditure, particularly on the credit card. By taking advantage of a 0 per cent balance transfer offer, people can relieve some of that pressure, giving them the opportunity to reduce those balances at a manageable rate.
"This makes it all the more surprising that people would not think about moving their balance to take advantage of these offers. If nothing else, by not even considering a balance transfer, people are missing out on significant savings, which when you are trying to clear down debt, is crucial."
Notes to Editors
Representative example - Nationwide Credit Card
15.9% APR representative (variable). Based on an assumed credit limit of GBP 1,200 and a purchase rate of 15.9% p.a. (variable).
Representative example - Select Credit Card
12.9% APR representative (variable). Based on an assumed credit limit of GBP 1,200 and a purchase rate of 12.9% p.a. (variable).
(1) All figures, unless otherwise stated, are from YouGov plc. The total sample size was 2,222 adults, of which 1,835 have a credit card. Fieldwork was undertaken between 19 and 21 December 2012. The survey was carried out online. These figures have been weighted and are representative of all UK adults (aged 18+).
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