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

Kelly Emmerton

16 Jan 2018

redactor/hero-images/248/bt-offers_content.jpg

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

    Apply By 31 October 2019

    Qantas Money Qantas Premier Everyday

    0% p.a. for 12 months and then 21.99% p.a.

    19.99% p.a.

    $49 $29 in the first year

    Receive Up to 42,000 points (7,000 points each month for the first 6 months when spending more than $1k each month). With a low annual fee of $29 for the first year.

    • 0% p.a. for 12 months and then 21.99% p.a.

    • $49 $29 in the first year

    • 19.99% p.a.

    • 55

    • 21.99% p.a.

    • 3%, min $3.00

    • Points are automatically credited to the Qantas Frequent Flyer program.

    Read our Mozo Review to learn more about the Qantas Premier Everyday

    Details Close

  • Promoted

    ANZ Low Rate

    0% p.a. for 15 months and then 21.74% p.a.

    12.49% p.a.

    $58

    With a low interest rate on your purchases and 0.0% p.a. on balance transfers for the first 15 months (T&Cs apply), this card makes for easy everyday spending. Apply online in just five minutes, and receive an answer in 60 seconds.

    • 0% p.a. for 15 months and then 21.74% p.a.

    • $58

    • 12.49% p.a.

    • 55

    • 21.74% p.a.

    • 2%

    Read our Mozo Review to learn more about the Low Rate

    Details Close

  • Promoted

    Virgin Money Virgin Australia Velocity Flyer Card - Purchase Rate and Balance Transfer Offer

    0% p.a. for 6 months and then 20.99% p.a.

    0% p.a. for 14 months then 20.74% p.a.

    $129 $64 in the first year

    Receive a $129 Virgin Australia gift voucher each year. 0.0% p.a. on purchases for up to 14 months.

    • 0% p.a. for 6 months and then 20.99% p.a.

    • $129 $64 in the first year

    • 0% p.a. for 14 months then 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

  • Promoted

    Apply By 30 September 2019

    HSBC Platinum Credit Card (12 Month Balance Transfer Offer)

    0% p.a. for 12 months and then 21.99% p.a. (2.00% balance transfer fee)

    0% p.a. for 12 months then 19.99% p.a.

    $129 Refunded when you spend over $6,000 p.a

    0%p.a. interest on all purchases and balance transfers for the first 12 months (no BT fee). with no bank transfer fee. Conditions apply. Travel like a high-flier with 2 airport lounge passes every year.

    • 0% p.a. for 12 months and then 21.99% p.a. (2.00% balance transfer fee)

    • $129 Refunded when you spend over $6,000 p.a

    • 0% p.a. for 12 months then 19.99% p.a.

    • 55

    • 21.99% p.a.

    • 3%, min $4.00

    • Redeem your points for travel, gift cards, retail rewards and shopping gift cards.

    Read our Mozo Review to learn more about the Platinum Credit Card

    Details Close

  • Promoted

    Apply By 31 October 2019

    Qantas Money Qantas Premier Platinum

    0% p.a. for 18 months and then 21.99% p.a.

    19.99% p.a.

    $299 $199 in the first year

    Receive up to 120,000 points (20,000 points each month for the first 6 months when spending more than $1.5k each month). $50 Wine voucher & 0% p.a. on balance transfers for 18 months.

    • 0% p.a. for 18 months and then 21.99% p.a.

    • $299 $199 in the first year

    • 19.99% p.a.

    • 55

    • 21.99% p.a.

    • 3%, min $3.00

    • Points are automatically credited to the Qantas Frequent Flyer program.

    Read our Mozo Review to learn more about the Qantas Premier Platinum

    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.

Mozo may receive advertising fees from the financial institutions, issuers of financial or credit products and third party advice providers that are shown on this page. These fees are based on a cost per click, cost per acquisition, or a fixed fee.