More than 4.5 million Britons are planning to move in excess of £3.2bn pounds between credit cards in the first three months of 2010, according to Santander. While the research found that cardholders planning a balance transfer in the New Year will transfer an average sum of just £1,140, compared with £2,290 in 2009, people could still be walking blind into greater adverse debt problems.

Moving debt to another credit card just prolongs the inevitable. It might mean low rates for a while, but once the introduction periods have passed, credit card debt is double-digit rates of interest and the risk of worsening credit ratings and harsh penalties and fees.

But by consolidating the debt using a secured loan, all that can be avoided. Consolidation means lower rates of repayment and less risk to credit ratings. It also has long-term benefits – as your house becomes more valuable, your debt diminishes.

Of course consolidation is not right for everyone, and admittedly moving to another credit card is an example of pro-active financial management. But to be sure, and to assess all your options, talk to a financial professional. They will give you an impartial and fair opinion of what’s best for you, in the short and the long term.

SOURCE: Santander, 02/01/10

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