There are currently only 52 credit card providers offering 0% interest to people who transfer existing debt to them, down from 90 in August 2005, according to Moneynet.co.uk.
The number of 0% balance transfer credit card deals has nearly halved during the past four years, research shows. Credit card comparison sites also mean that more people are shopping around for their credit card deal.
But the length of time that these deals are available for has increased, rising from an average of 6.48 months in 2005 to 9.7 months now, although this is down from just under 10 months last year.
There are currently 24 different credit cards offering a 0% deal for at least 12 months, compared with 39 a year early, but no providers offered such a long interest free period in 2005.
The average rate credit cardholders are charged on purchases has risen only slightly during the past four years to 17.32%, up from 15.15%.
But the interest people are charged on cash advances has soared from an average of 19.04% in 2005 to 26.01% now.
Andrew Hagger, of Moneynet.co.uk, said: “With bad debts causing a real headache for most credit card lenders, it’s no surprise to see that the number of interest free balance transfer deals has started to decline.
“It’s not just the total number of 0% balance transfer cards that have fallen away, but we’ve also seen the number of longer term offers chopped too.”
“Whilst there are still 0% deals to be found, lenders have become ultra cautious and only the very best customers will now have a chance of being accepted for these cards.”
