£1.1bn monthly credit card shuffle

Britons are switching £1.1 billion between credit cards each month - as they search out the falling number of 0% credit card deals in the market.

Data from Sainsbury's shows 16,000 people try to make balance transfers a month - with the average balance transfer standing at £1,555. But some 4.2 per cent of people are trying to move credit card debts of over £5,000.

However, research from Fool.co.uk last month suggests the search for a balance transfer creidt card could be fuirtless as the the number of cards available has shrunk to 24 genuine 0% balance transfer cards on the market – lasting at least ten months – from nine companies.

Sainsbury's found the average 0% balance transfer period now stands at 9.5 months and a third of deals last for just six months - which, when transfer fees are factored in, mean savings from switching are pushed down.

Donald MacLeod, head of cards at Sainsbury's, said: "There is a significant market for cards offering balance transfers as our research indicates that 40 per cent of card holders think it will take longer than one month to clear their current balance.

"Although there are a number of credit cards offering introductory 0% on balance transfers, there is a considerable difference in their duration so people need to choose carefully."

As well as interest rates on the cards, balance transfer fees and the length of the 0% deal, Mr MacLeod also urged people to look at other features of a card, such as a reward programme or cash back.

Across the country, people in the south-west are relying most on their creidt cards with 60 per cent admitting they fail to pay off their balances each month - compared with 30 per cent in the north-west and 32 per cent in Yorkshire.