50% of Aussies still have Christmas credit card debt


Although the festive season has well and truly passed, new Mozo research has found that some Aussies have been left with a reminder they’d rather forget. 

We found that 52% of Australinas used a credit card to get through the Christmas period, with one in two (56%) concerned about how they are going to pay it off. 

Despite the Buy Now Pay Later (BNPL) boom, only 10% of shoppers opted to use BNPL to manage their Christmas spending. 

“Although there has been a lot of hype around the popularity of buy now pay later services, it seems that when it comes to the crunch credit cards are still one of Australia’s most popular forms of payment, particularly when it comes to spreading the cost of Christmas” says Mozo Director, Kirsty Lamont. 

Mozo’s findings come as the latest figures from the RBA revealed that the country collectively has $20.16 billion worth of credit card debt. 

Lamont suggests to Aussies struggling to get on top of their credit card debt to consider a balance transfer credit card. These are credit cards which feature 0% interest for a fixed period of time. 

“Credit cards can be a useful way to manage multiple purchases however, if you’ve gone overboard  and need to get respite from high interest charges to help get back in the black, balance transfer offers are worth looking at,” says Lamont.

At the time of writing, there are 82 balance transfer deals available in the Mozo database, with zero interest offers ranging from 6 to 30 months. Following a quick number crunch, Mozo found that a 12 month balance transfer credit card could save a customer $679 on a debt of $4,200.


Mozo’s three steps to taking out a balance transfer credit card:

  • Nail down a repayment plan - The first to getting debt-free is to get your repayment plan sorted. You can do this by sitting down with your budget to work out how much you can afford to contribute to your debt each month. 
  • Choose the right offer - You’ll then need to work out how long you need the 0% interest period for. Since you now have your repayment plan, this should be easy to determine. But just in case you need a little help, have a play with our credit card debt payments calculator.
  • Leave the card at home - Once you are approved for your balance transfer card, it’s critical that you do not spend it. Not only will this put a dent in your repayment plan, but any spending made with the card will attract the card’s purchase rate and will need to be paid off first.

Ready to start your search for the right balance transfer card for you? Head on over to our credit card comparison tool or get started with the offers below.

Compare balance transfer credit cards - rates updated daily

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure.
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We've updated the table to show your savings!(how are they calculated?)
  • placeholder
    NAB Low Rate Card - Balance Transfer Offer

    Spend with confidence with a low 13.49% p.a. variable purchase rate and 0% p.a. interest on balance transfers for the first 28 months (T&Cs apply). 2% balance transfer fee applies. There’s also up to 55 interest free days on purchases to help you manage your budget better when you make minimum repayments. Minimum credit limit $1,000. No annual fee for the first year (usually $59).

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 28 months and then 21.74% p.a. (2.00% balance transfer fee)
    13.49% p.a.
    $59 $0 in the first year
  • Apply By 30 April 2024
    Citi Premier

    120,000 bonus points when you spend $4,000 within 90 days from card approval. Complimentary features like travel insurance and concierge.

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 6 months and then 22.24% p.a.
    21.49% p.a.
    $300 $150 in the subsequent years if you spend $48,000 on eligible purchases or cash advances in previous year., $150 in the first year
    Citi Rewards Program
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    Bank of Queensland Blue Visa Credit Card

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 9 months and then 21.74% p.a.
    0% p.a. for 9 months then 20.74% p.a.
    Q Rewards
  • Apply By 14 May 2024
    Virgin Money Virgin Australia Velocity Flyer Card - Balance Transfer Offer

    Get in the air with a $129 Virgin Australia Gift Voucher each year. 0% p.a. for 28 months on balance transfers.

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 24 months and then 20.99% p.a.
    20.74% p.a.
    $149 $0 in the first year
    Velocity Frequent Flyer

^See information about the Mozo Experts Choice Credit Card Awards

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