Aussies can save up to $755 by blasting bad debt with a balance transfer deal

Kelly Emmerton   |   16 Jan 2018

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Mozo research has revealed that with Australia’s post-Christmas credit card bill expected to reach a total $33 billion this year, picking up a balance transfer credit card might help Aussies avoid some of the sting.

Compared to a regular card charging interest on a credit card bill, a balance transfer card stands to save Aussie spenders up to $775 for those who use it effectively to blast debt.

“For those who are feeling the Christmas debt hangover, a balance transfer card can be a great way to gain some breathing room and get rid of that pesky balance. Thanks to the interest free period on offer with most balance transfer cards, all your payments will be chipping away at your debt - not going toward interest,” said Mozo Director, Kirsty Lamont.

But Lamont also warned cardholders to be careful when taking on a balance transfer and to have a plan in place to pay off your debt within the given interest free period.

“Choosing the right balance transfer deal, with a long enough interest free period that you can comfortably clear your entire balance before the revert rate kicks in is key. Having a plan for how to do that - including knowing how much you should be paying back every month to meet your goal - is also super important,” she said.

Balance transfer credit card comparisons on Mozo - rates updated daily

  • Hot Deal 0% for 26 months

    Citi Platinum (Balance Transfer Offer)

    0% p.a. for 26 months and then 21.74% p.a. (2.50% balance transfer fee)

    20.99% p.a.

    $149 $49 in the first year

    0%p.a. for 26 months on balance transfers (one off 2.5% BT fee applies, reverts to cash advance rate). Also receive complimentary International Travel Insurance.

    • 0% p.a. for 26 months and then 21.74% p.a. (2.50% balance transfer fee)

    • $149 $49 in the first year

    • 20.99% p.a.

    • 55

    • 21.74% p.a.

    • 3.5%, min $3.50

    • Transfer points to a range of airline programs or redeem your points for travel, cashback, gift cards, retail rewards and shopping gift cards.

    Details Close

  • Apply By 30 September 2018

    Woolworths Everyday Platinum Credit Card

    0% p.a. for 14 months and then 21.99% p.a.

    19.99% p.a.

    $49 $0 in the first year

    10% off your 1st Woolworths shop on selected dates once a month. No annual fee for the first year.

    • 0% p.a. for 14 months and then 21.99% p.a.

    • $49 $0 in the first year

    • 19.99% p.a.

    • 55

    • 21.99% p.a.

    • 3%, minimum $5

    • Woolworths Money Shopping Card sent every 4 months if enough points have been accrued.

    Details Close

  • 28 Degrees Platinum Mastercard

    4.99% p.a. for 6 months and then 21.99% p.a.

    21.99% p.a.

    $0

    $0 overseas fees on purchases + Enjoy fast, premium quality Global Wi-Fi at more than 1 million hotspots worldwide

    • 4.99% p.a. for 6 months and then 21.99% p.a.

    • $0

    • 21.99% p.a.

    • 55

    • 21.99% p.a.

    • 3%, min $4

    Details Close

  • Bankwest Breeze Platinum Mastercard

    0% p.a. for 13 months and then 12.99% p.a. (2.00% balance transfer fee)

    0% p.a. for 13 months then 12.99% p.a.

    $99

    Complimentary international travel insurance for yourself and your family when you purchase return tickets

    • 0% p.a. for 13 months and then 12.99% p.a. (2.00% balance transfer fee)

    • $99

    • 0% p.a. for 13 months then 12.99% p.a.

    • 55

    • 21.99% p.a.

    • 2%, Min $4.00

    Details Close

  • Apply By 02 September 2018

    Virgin Money Virgin Australia Velocity Flyer Card - Balance Transfer and Points Offer

    0% p.a. for 18 months and then 20.99% p.a.

    20.74% p.a.

    $129 $65 in the first year

    Earn 3 bonus Velocity Points on top of standard earn rates in first 3 months

    • 0% p.a. for 18 months and then 20.99% p.a.

    • $129 $65 in the first year

    • 20.74% p.a.

    • 44

    • 20.99% p.a.

    • 2.7%, Min $2.70

    • Points are credited to the Velocity Frequent Flyer program.

    Details Close

Balance transfer tips to help you free yourself from debt

  • Avoid new purchases. New purchases put on your credit card are charged interest at the regular amount, not the 0% balance transfer rate. Plus, your repayments will go toward these new charges first, instead of working to chip away at your debt. That means it’s much wiser to hold off on new spending until you’ve cleared your existing balance.
  • Consider the BT fee. Many balance transfer cards with longer interest free periods up to 26 months also come with balance transfer fees of around 1%-3%. It’s worth checking on this, as these fees can run into the hundreds of dollars if you’re transferring a bigger chunk of debt across.
  • Watch out for hefty annual fees. Another thing to consider is that an annual fee can be another big cost, depending on the card you choose. It’s a good idea to look for an option with a low or no annual fee, or if you do opt for a card with all the features and a price tag to match, make sure you account for that in your repayment plan. Which brings us to...
  • Set a debt repayment plan. Perhaps one of the most important things to do when taking up a balance transfer credit card offer, is to make sure you have a realistic plan in place to pay off your debt. For example, if you’re paying off a $3,500 debt with an interest free period of 12 months, you should be aiming to repay around $300 every month.


Ready to clear your Christmas credit card debt? Check out the balance transfer offers in the table above, or head over to our credit card comparison table to see more options.

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