Despite the global credit crunch that is still wreaking havoc in the UK’s financial markets, credit card transfer still remain popular, with many consumers trying or planning to transfer balances from their higher interest credit cards onto interest free balance transfer cards in a bid to try and save money on interest charges. According to the research thousands of cardholders are continuing to try and transfer balances every month even though credit conditions are very tight because of the global credit crunch.

Household finances have been hit in many ways over recent months, from rising borrowing costs to higher bills, food costs, and petrol prices. As a result of this many are looking for new ways in which to save some money and ease the financial strain, and for many one of the solutions is try transfer the balance from high interest credit cards onto an interest free balance transfer card.

Industry officials are warning, however, that whilst transferring credit card balances can save you money on interest there is still a transfer fee to be paid on most cards, which equates to around 2-3% of the total amount being transferred. Borrowers also need to ensure that they repay the balance within the interest free period in order to avoid interest charges.

Officials have also warned that the choice of cards is now far more limited, as lending criteria has been tightened considerably since the onset of the global credit crunch. This means that many borrowers may find it very difficult to get a balance transfer credit card in the current financial climate, as lenders are being far more cautious over who they lend to and how much new business they take on.