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.