TotallyMoney has looked at improvements in balance transfer terms over the past 12 months and found:
- On average, balance transfer lengths have improved by almost five months*, with most big banks now offering more than 30 months
- With the average interest-bearing balance of £3,002, and with a typical 3.5% fee, this improvement in length represents a saving of £1,568†
- One in two (48.6%) credit card customers are paying interest on their balance each month and could benefit from a balance transfer‡
- Meanwhile, credit card debt continues to grow, with average interest-bearing balance increasing by £103 (from £2,899 to £3,002) in the past year§
Commentary and analysis is provided by TotallyMoney CEO, Alastair Douglas, and personal finance expert, Andrew Hagger of Moneycomms.
Balance transfers: the great debt reset
For a small fee of 3-4%, a balance transfer lets you shift your credit card debt, and stop paying interest for a set amount of time. Longer balance transfer lengths usually mean longer periods without paying interest, and bigger savings.
New TotallyMoney research conducted by Moneycomms found that in the past year, average balance transfer lengths have improved by almost five months, with NatWest improving theirs by 11.
| Bank | 24.06.2024 | 23.06.2025 | 12-month increase |
| Barclaycard | 28 | 33 | 5 months |
| Halifax | 27 | 29 | 2 months |
| HSBC | 27 | 33 | 6 months |
| Lloyds Bank | 27 | 31 | 4 months |
| M&S Bank | 26 | 30 | 4 months |
| MBNA | 27 | 33 | 6 months |
| NatWest | 23 | 34 | 11 months |
| Santander | 26 | 31 | 5 months |
| Tesco Bank | 29 | 33 | 4 months |
| TSB | 24 | 24 | 0 months |
| Virgin Money | 28 | 32 | 4 months |
| Average | 26.55 | 31.18 | 4.63 months |
| Research by Moneycomms 24/06/25 | |||
This comes as average interest-bearing credit card balances continue to rise, with TotallyMoney data showing an increase of £103 (from £2,899 to £3,002) in the past year. Research also shows that one in two (48.6%) credit card customers are paying interest on their balances each month, and could benefit from a balance transfer.
A customer shifting the average interest-bearing balance to the leading NatWest 34-month offer could save £1,720. If they shifted the same £3,002 balance to the average 31-month card with a typical 3.5% fee, they could save £1,568.
Alastair Douglas, CEO of TotallyMoney comments:
“Balance transfers have been getting better, with most big banks now offering more than 30 months interest free. And with half of credit card customers paying interest each month, and the amount owed continuing to grow, now’s the time to check your eligibility, and save hundreds, if not thousands of pounds.”
Andrew Hagger, personal finance expert at Moneycomms adds:
“Credit Card lenders are fighting tooth and nail to win balances from their rivals, and as a result 0% deals just keep getting longer. Which is great news for consumers who wish to shift an existing card balance and save some significant interest costs into the bargain.
“The way the competition is hotting up I wouldn’t be surprised to see a 3-year 0% deal on offer before the end of 2025.”
Alastair Douglas with four tips for balance transfer success:
1. Get the guarantees
“By law, credit card customers only need to give 51% of applicants the advertised product. And that’s why it’s important to look out for offers which give you pre-approval, guarantee offer lengths, limits, and APRs. Otherwise, you might end up with something worse than what you thought you were going to get.”
2. Don’t spend
“Unless the same card comes with a purchase offer, then avoid spending with your balance transfer. That’s because the rates are usually high, and you might make it more difficult to clear your balance in the long run.”
3. Make a plan
“While avoiding interest is great, your long-term goal should be to clear the balance and get debt free. So, it’s important to make a repayment plan and to stick to it. The easiest way might be to just divide the total amount you owe, by the number of interest free months you get, and to set up a Direct Debit making the same repayment each month.”
4. Know the score
“The best offers are usually only available for those with the best credit scores — so download a free personal finance app to check yours. It should also give you the chance to fix anything that’s holding you back, and provide you with a personalised plan to help you to start moving forward.”
