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Balance transfer activity hit its highest levels in nearly 20 years in January as borrowers took advantage of offers by credit card providers.
Some £1.8 billion worth of credit card balance transfers was recorded in January, marking the highest value since February 2005.
This shows us that consumers are taking advantage of lenders’ competitive balance transfer offers and paying down their outstanding balances
Janine Randolph, UK Finance
UK Finance said that outstanding balances on credit card accounts increased by 9.4% over the 12 months to January.
Just over half (50.5%) of outstanding balances incurred interest, down from 51.3% in January 2023, according to the finance and banking industry body.
Janine Randolph, head of data management at UK Finance, said: “This shows us that consumers are taking advantage of lenders’ competitive balance transfer offers and paying down their outstanding balances.
“As such, we haven’t seen signs of a fall in consumers’ ability to make their credit card repayments.”