Are People Managing Their Debt Properly?

Are People Managing Their Debt Properly? 
More than half of UK credit card holders would never consider doing a
credit card balance transfer, missing out on a saving of GBP 350 
LONDON, UNITED KINGDOM -- (Marketwire) -- 01/09/13 -- More than half
of UK credit card holders say they would never consider doing a
balance transfer on their credit cards, according to new research by
Nationwide Building Society(1). By not moving their balance, people
are not taking advantage of a useful way to manage their debt, and
more importantly, could be missing out on significant savings.  
In a survey of over 1,800 UK credit card holders, 53 per cent said
they would never consider transferring their credit card balance to a
new card. Yet, almost a quarter (24 per cent) would consider
transferring a balance of up to GBP 2,000. 
People who don't pay off their card balance every month could save by
transferring their balance to a card with a lower interest rate. For
example, the Nationwide Credit Card and Select(2) Credit Card both
come with a competitive introductory offer(3) of 0 per cent for 20
months on balance transfers in addition to a range of other benefits
including cashback(4), low APR and commission-free purchases abroad. 
All balance transfers come with a fee attached yet, even including a
fee of 3.1 per cent, a person could save GBP 172.25 if they transfer
GBP 1,000 to a Nationwide credit card from another card charging 12.9
per cent APR. The saving increases to GBP 259.61 if transferring the
same amount from a card with an APR of 18.9 per cent and GBP 343.03
from a card with an APR of a 24.9 per cent(5).  
In addition, anyone now opening either of the Society's two credit
cards via will benefit from a 50 per cent
discount on the balance transfer fee. The reduced fee of 1.55 per
cent, along with the introductory offer above, is only available if
the balance transfer occurs within the first three months of
Paul Carvell, Nationwide's head of credit cards, said:  
"The New Year can often bring with it the stress of how to manage
debt racked up through Christmas-related expenditure, particularly on
the credit card. By taking advantage of a 0 per cent balance transfer
offer, people can relieve some of that pressure, giving them the
opportunity to reduce those ba
lances at a manageable rate. 
"This makes it all the more surprising that people would not think
about moving their balance to take advantage of these offers. If
nothing else, by not even considering a balance transfer, people are
missing out on significant savings, which when you are trying to
clear down debt, is crucial."  
Notes to Editors 
Representative example - Nationwide Credit Card 
15.9% APR representative (variable). Based on an assumed credit limit
of GBP 1,200 and a purchase rate of 15.9% p.a. (variable). 
Representative example - Select Credit Card 
12.9% APR representative (variable). Based on an assumed credit limit
of GBP 1,200 and a purchase rate of 12.9% p.a. (variable). 
(1) All figures, unless otherwise stated, are from YouGov plc. The
total sample size was 2,222 adults, of which 1,835 have a credit
card. Fieldwork was undertaken between 19 and 21 December 2012. The
survey was carried out online. These figures have been weighted and
are representative of all UK adults (aged 18+). 
(2) The Select Credit Card is available to any members who use their
Nationwide FlexAccount as their main current account or hold
Nationwide's FlexDirect current account. 
To qualify as a main FlexAccount holder, you have to hold a
FlexAccount with a Visa debit card (not a cash card+) and: 

--  Have paid in GBP 750 or more each month (excluding internal transfers)
    for the past three months, or: 
--  Agree to complete an Account Transfer from an account (non Nationwide)
    using our Account Transfer Service or have done so in the past four

(3) Introductory offers are available to new account openings where
the customer has not held a Nationwide credit card for at least the
past year. Introductory rates apply from the date the account is
opened. Balance transfers at 0% must be made within three months from
account opening and are subject to a fee of 1.55%. Balance transfers
made three months after account opening are subject to a fee of 3.1%
(minimum GBP 5). 
(4) Offer available on Select Credit Card only. For cashback,
customers must maintain a main current account relationship with
(5) Calculations made using the Nationwide balance transfer
etransfer.htm.Figures are based on GBP 1,000 balance transferred, 20-month
interest-free offer period, no purchases, a balance transfer fee of
3.1% and assumes a constant account balance with interest charged
from account opening. 
(6) Offer may be withdrawn at any time. 

--  Credit cards are only available to those aged 18 and over and depend on
    the customer's circumstances. 
--  Nationwide subscribes to the Lending Code. 
--  Customers should consider all borrowing options carefully and seek
    independent advice. 
--  Nationwide Building Society is authorised and regulated by the Financial
    Services Authority under registration number 106078. Credit facilities
    other than regulated mortgages are not regulated by the Financial
    Services Authority. You can confirm our registration on the FSA's
    website, or by contacting the FSA on 0845 606 1234.

About Nationwide 
Nationwide is the world's largest building society as well as the
second largest savings provider and a top-three provider of mortgages
in the UK. It is also a major provider of current accounts, credit
cards, ISAs and personal loans. Nationwide has around 15 million
Customers can manage their finances in a branch, on the telephone,
internet and post. The Society has around 16,000 employees.
Nationwide's head office is in Swindon with administration centres
based in Northampton, Bournemouth and Dunfermline. The Society also
has a number of call centres across the UK. 
Media information:
Nationwide Building Society
Mike Pitcher
01793 657225 
Nationwide Building Society
Myra Butterworth
01793 655773
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