The plastic Grinch - getting rid of Christmas debt with a balance transfer credit card

Ceyda Erem

08 Jan 2018

Xmas debt content

It’s usually at this point during January that we start taking down the Christmas tree and stuffing cardboard boxes with ornaments and decorations before sending them on a one-way ticket to the attic. But despite your efforts to make your home a Christmas-free zone, there’s still a reminder that hangs around - your credit card bill. But getting rid of that post Christmas debt is possible and it all starts with the help of a balance transfer credit card.

Balance transfer credit cards to help blast debt

Rates updated daily. Advertiser disclosure.

  • Apply By 30 June 2021

    Bendigo Bank Low Rate Credit Card

    0% p.a. for 24 months and then 11.99% p.a. (2.00% balance transfer fee)

    11.99% p.a.

    $45

    0% p.a. balance transfer for 24 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.

    • 11.99% p.a.

    • -

    • 0% p.a. for 24 months and then 11.99% p.a. (2.00% balance transfer fee)

    • 13.99% p.a.

    • 55

    • 3.00%

    • $45

    • $15.00

    • 0.50%, Min $3.25

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

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  • St.George Vertigo

    0% p.a. for 28 months and then 21.49% p.a.

    13.99% p.a.

    $55

    0% p.a. for 28 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. New cards only, Eligibility criteria and T&Cs apply. Offer ends September 28th 2021.

    • 13.99% p.a.

    • -

    • 0% p.a. for 28 months and then 21.49% p.a.

    • 21.49% p.a.

    • 55

    • 3.00%

    • $55

    • $15.00

    • 2%, Min $2.50

    Read our Mozo Review to learn more about the Vertigo

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  • Apply By 07 September 2021

    Westpac Low Rate

    0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)

    13.74% p.a.

    $59 $0 in the first year

    Enjoy a super low rate of 13.74% with 55 days interest free plus 0% balance transfer for up to 28 months at 1% BT fee. No annual card fee for the first year, $59 thereafter.

    • 13.74% p.a.

    • -

    • 0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)

    • 21.49% p.a.

    • 55

    • 0.0

    • 3.00%

    • $59 $0 in the first year

    • $15.00

    • 2%, Min $2.50, Max $150

    Read our Mozo Review to learn more about the Low Rate

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  • St.George Amplify Platinum

    0% p.a. for 15 months and then 21.49% p.a. (1.00% balance transfer fee)

    19.74% p.a.

    $99

    80,000 bonus Amplify Points, worth up to $350 in eGift Cards (min $3,000 spend within 90 days. 0% p.a. for 15 months on balance transfers requested at card application (1% BT fee). New cards only, Eligibility criteria and T&Cs apply. Offer ends 28th September 2021.

    • 19.74% p.a.

    • -

    • 0% p.a. for 15 months and then 21.49% p.a. (1.00% balance transfer fee)

    • 21.49% p.a.

    • 55

    • 3.00%

    • $99

    • $15.00

    • 2%, Min $2.50

    Read our Mozo Review to learn more about the Amplify Platinum

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  • NAB Low Rate Card

    0% p.a. for 26 months and then 21.74% p.a. (2.00% balance transfer fee)

    12.99% p.a.

    $59 $0 in the first year

    0% p.a. interest on balance transfers for the first 26 months (2% fee), plus a low ongoing purchase rate after that means 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 26 months and then 21.74% p.a. (2.00% balance transfer fee)

    • 21.74% p.a.

    • 55

    • 0.0

    • 3.00%

    • $59 $0 in the first year

    • $15.00

    • 2%, Min $2.50

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

    Details Close

^See information about the Mozo Experts Choice Credit cards Awards

Step 1: Hash out the details 

Going into anything blind is never a good idea so make sure to be specific with how long you intend to use the balance transfer card for. The general time period for these cards starts at 6 months and can be upwards of 24 months, that is, before the revert rate kicks in. Just remember, the larger the debt, the longer you’ll need to hang onto the card.

Step 2: Compare your options 

Now comes the time to get specific with the type of card you want. There are a number of different balance transfer cards floating around, which can be overwhelming when you only need to pick one. Luckily, Mozo’s balance transfer comparison tool makes it easy to compare features of different cards, helping you find your new plastic match. It’s a good idea to look for a card with a lengthy BT period, low annual fee and low revert rate.

Step 3: Go hard or go home 

Your main mission in life is to now blast debt within the BT period. Although you do have the option of making the minimum repayment each month, this is generally not a good idea as you still may have a heap of debt left over once the BT period ends. You’ll need to work out how much you can afford to repay each month (our debt repayment calculator can help you there) while still being able to stay on top of other bills and everyday spending.

One way to stay consistent and never miss a repayment is by setting up a direct debit, which subtly forces you to pay debt off faster.

Step 4: Leave the card at home 

A balance transfer card is designed to help you ditch debt, not bring on any more. Do yourself a favour now by not spending with the BT card to prevent the following:

  • Going further into debt as you’ll need to pay of these new purchases first before tackling past spending
  • Acquiring new debt will be charged at the card’s purchase rate, which can hit over 20%

Step 5: Seriously, leave the card at home 

Withdrawing money on your BT card also spells trouble - you’ll have to pay the cash advance rate from the day you make the withdrawal until it’s paid off in full.

Step 6: Remember the revert rate 

All good things must come to an end and that includes your BT card’s interest-free period. This rate will be much higher, so you’ll need to be financially ready just in case you think that you won’t pay off the debt in time. Another way to combat this by selecting a balance transfer card with a low revert rate.

Step 7: Stay put 

Moving debt around from one card to another is not good for your credit score. So stay put, pay off the balance in full each month and kiss credit card debt goodbye.