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.

Debt-blasting balance transfer cards - rates updated daily

  • Promoted

    Bankwest Zero Platinum Mastercard

    2.99% p.a. for 9 months and then 17.99% p.a.

    17.99% p.a.

    $0

    This card boasts no annual fee and the option to pay with the Bankwest Halo payment ring. Plus, with no foreign transaction fees and complimentary travel insurance it's a good pick for travel. Winner of a Mozo Experts Choice Award 2019 in the No Annual Fee Platinum Credit Card category^.

    • 17.99% p.a.

    • -

    • 2.99% p.a. for 9 months and then 17.99% p.a.

    • 21.99% p.a.

    • 55

    • 0%

    • $0

    • $25.00

    • 2%, Min $4.00

    Read our Mozo Review to learn more about the Zero Platinum Mastercard

    Details Close

  • Promoted

    Hot Deal $200 Cashback Offer (T&Cs apply)

    Westpac Low Rate

    0% p.a. for 20 months and then 21.49% p.a. (1.00% balance transfer fee)

    13.74% p.a.

    $59

    Enjoy 0% p.a. interest on balance transfers for the first 20 months. Get $200 cashback with $1k minimum spend on eligible purchases within 90 days of card approval. 55 interest free days and low on-going rate of 13.74% on all purchases.

    • 13.74% p.a.

    • -

    • 0% p.a. for 20 months and then 21.49% p.a. (1.00% balance transfer fee)

    • 21.49% p.a.

    • 55

    • 3.00%

    • $59

    • $15.00

    • 2%, Min $2.50, Max $150

    Read our Mozo Review to learn more about the Low Rate

    Details Close

  • Promoted

    NAB Low Rate Card

    0% p.a. for 20 months and then 21.74% p.a. (2.00% balance transfer fee)

    12.99% p.a.

    $59

    0% p.a. interest on purchases for the first 6 months, plus a low ongoing rate after that mean you can spend with confidence. There's also up to 55 interest free days on purchases to help you manage your budget better.

    • 12.99% p.a.

    • -

    • 0% p.a. for 20 months and then 21.74% p.a. (2.00% balance transfer fee)

    • 21.74% p.a.

    • 55

    • 3.00%

    • $59

    • $15.00

    • 2%, Min $2.50

    Read our Mozo Review to learn more about the Low Rate Card

    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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