A new survey from the AA has revealed that 5.4 million people (11%) have transferred balances between credit cards.
On average, people playing the game of loans have made three transfers. 2.6 million(20% of balance transfer card users)have made more than five balance transfers in the past year.
People are juggling an average of £2,353 worth of debt between cards and 1.6 million (10%) Brits are playing the game with over £5,000 worth of debt.
The research reveals that it’s not until we are in our fifties that we reach money maturity, with a long term plan in place to pay off our debts.
21% said they would like to pay off their borrowing but are not currently in a position to do so.
Michael Johnson, director of financial services at the AA, said: “Of those that are borrowing, 14 million (47% of those in debt) do not know how much interest they are paying in total. Whilst low cost loans and balance transfers can be a good way of consolidating debt, many risk paying a price for missed payments.
“People need to be aware of the rules of the game, knowing how long introductory rates last and what might cause them to end early, for example missing a payment. Setting a calendar reminder for when your introductory rate ends can ensure you don’t sleep walk into paying higher interest and experience an unwelcome addition to your monthly commitments.
“Playing game of loans can be helpful for a short period, but the key is to be honest with yourself about when it’s time to stop. Replacing credit card balances with one personal loan can be a good first step to ending the game and committing to regular repayments.”
