According to a recent report a hike in credit card costs could become a reality for many cardholders in the UK, with many people finding that their interest free credit card periods are due to come to an end. A huge number of people have been taking out 0% balance transfer credit cards in order to transfer money from high interest cards on the balance transfer card and avoid paying interest for a period of time. However, many are now finding that the 0% period is coming to an end, which means that interest will start being charged on the card.

In the past this was not too much of a problem, as many consumers were able to switch any remaining balance onto another 0% balance transfer credit card, which means that they could enjoy a further period of interest free credit. However, over the past year credit conditions have become far tighter, and many of those that may easily have been able to get another 0% card in the past will now find that they are no longer able to get their hands on another card.

Some officials have worked out that between April and November of last year around five million consumers transferred balances from high interest credit cards onto 0% balance transfer cards, and with many of these balance transfer cards offering an interest free period of around twelve months many are due to come to an end. Also, the average rate of interest charged on credit cards has gone up during this time, so when interest does start being charged it may be at a higher rate than it would have been previously.

Industry experts have added that the number of 0% balance transfer credit cards on the market has risen over the course of the year, but that availability of these cards remained strained because of the effects of the global credit crunch.