Demand for 0% credit cards surges as Brits tackle debt

New data shows balance transfer enquiries up 15.7% compared with last year*, as households seek relief from mounting interest charges.

Balance transfer credit cards allow consumers to move existing debt from one card to another, often offering a 0% interest period of 18 to 34 months. 

During this time, repayments go entirely toward reducing the balance rather than interest, giving users more breathing space. 

The longest 0% deal currently available on MoneySuperMarket lasts up to 35 months, while, the average annual percentage rate (APR) for balance transfer cards stands at 27.8%, the lowest among all major credit card types.

January surge continues throughout the year

January traditionally sees a spike in people looking to get their finances in order. In January 2025, balance transfer enquiries recorded by MoneySuperMarket were up more than 19% compared to January 2024. But unlike previous years, strong demand has continued beyond New Year resolutions.

Between January and September 2025, enquiries for 0% balance transfer cards rose by an average of 16%, with September alone seeing a 42% increase compared with the same month last year. This may reflect households tackling debt earlier and preparing for winter spending pressures.

Kara Gammell
Personal Finance & Insurance Expert

Plan your repayments carefully when using a balance transfer card

We’re seeing more people taking control of their finances after a challenging year for household budgets. An interest-free balance transfer card can be a smart way to get breathing space and focus on clearing what you owe without interest building up.

The key is to stay disciplined - make regular payments and aim to pay off the balance before the 0% period ends to avoid high interest charges later.

The trends we're seeing signal a clear shift in consumer behaviour, with more people tackling debt proactively rather than waiting for the new year resolutions.

At this rate, we can expect demand for balance transfer cards to remain strong into early 2026, as households aim to reduce interest costs and rebuild financial confidence amid high rates.

Top tips using balance transfer cards wisely

With more people looking to take control of their finances before the new year, there are a few simple ways to make the most of a 0% balance transfer card and steer clear of common mistakes.

1. Pay off as much as possible during the 0% period

Treat the 0% window as a countdown, not a comfort zone. Set up a monthly direct debit to pay off as much as you can before interest kicks in - even small extra payments can make a big difference over time.

2. Check for transfer fees

Some cards charge a one-off fee to transfer a balance, usually between 1% and 3%, while others are fee-free. Always check the small print and do your sums carefully - a longer 0% term with a small fee can sometimes offer better value than a shorter, fee-free deal.

3. Don’t spend on the same card

Keep your balance transfer card for repayments only. New purchases often don’t qualify for the 0% rate and can make it harder to track your progress and clear your debt.

4. Compare before applying

Everyone’s credit profile is unique, so it really pays to shop around before applying. Using a comparison site like MoneySuperMarket means you can check personalised credit card deals without leaving a mark on your credit score.

It’s a smart way to see which cards you’re more likely to be accepted for, helping you choose the right option for your needs without unnecessary applications.

Plus, with MoneySuperMarket’s free Credit Score tool, you can keep track of your credit score and get tailored tips to help improve it over time.

Just remember, eligibility checks aren’t a guarantee of approval – the lender makes the final decision.

^{Sources
*MoneySuperMarket consumer data}