Recent research carried out by Sainsbury’s Finance has shown that balance transfers onto 0% balance transfer cards are still proving popular amongst consumers despite the global credit crunch that has resulted in tighter credit conditions. According to the research millions of us are looking to transfer billions of pounds collectively over the next few months alone in a bid to save on interest on our existing higher interest credit cards.

These 0% balance transfer credit cards have proven popular for some time, and have helped many cardholders to save a small fortune on interest by switching their balances and repaying the total amount within the interest free period. However, the global credit crunch has resulted in many people being unable to get credit cards due to tighter lending conditions. Balance transfers may also prove more expensive for some people now, as many of the capped transfer fee deals have been taken off the market over recent months.

Despite these issues, however, there are still 4.3 million cardholders that are planning to transfer their balances from high interest credit cards onto a 0% balance transfer credit card by June of this year. It is though that well over six billion pounds will be transferred collectively over this period. One official involved in the research said: “Our research shows that there are an estimated five 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.”

Consumers that do plan to transfer their balance are advised to look out for the most suitable deals, and to check the balance transfer fee charged as well as checking on the interest free period offered by the lender.