With credit card interest rates having soared over the past couple of years, with rate rises and increased fees even having been applied over recent months despite base rate cuts, it is likely that many people may be thinking of switching their credit cards in order to try and get a better deal and reduce their repayments, particularly in the current financial climate where many are struggling to make ends meet financially.

Some industry officials have predicted that following a frenzy of credit card switching in the latter half of last year, the trend is likely to continue over the course of this year, despite the tighter credit conditions that have stemmed from the global credit crunch. In the final half of last year it is thought that around six million cardholder switched their credit cards in order to try and get a better deal, and as credit card provider continue to hike up rates and introduce extortionate fees many more people may look around for a better deal.

The number of people switching credit cards in the last six months of last year rocketed by 400,000 compared to the first six months of the year.

One industry official recently said: “The increase in credit card switching means that people are concentrating more on reducing debts and are less concerned about other product areas. And with bills increasing across the board it wouldn’t be a surprise to see further rises in credit card switching in the next six months as consumers struggle to cope.”

He went on to state: “Credit card companies still offer lengthy zero per cent deals – some as long as 15 months – which means that so-called ‘rate tarts‘ will be here to stay. The worry is that consumers will see a zero per cent deal as a chance to service debt rather than repay debt. That is a precarious situation as sitting on debt often leads to spending more elsewhere. It will almost certainly be the case that everyone can save money by switching – or at least stave off hefty interest payments – and we would urge consumers to continue to seek out the best deals.”

He age group that found it most difficult to cope with their finances, and therefore tried to switch credit cards to find a more competitive and affordable deal, was the 25-34 age group. Whilst many more people may attempt to switch their credit cards in order to get a good deal and cut back on costs, consumers are urged to remember that increasingly tight credit conditions may make it more difficult to get a better deal on a credit card.

Consumers can check the details of a range of credit cards by using the Internet, and often price comparison sites that deal with credit cards will allow you to see the best credit card deals at a glance. However, consumers should avoid making mass applications, as this can increase the chances of rejection, which can damage the credit rating.

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