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

Ceyda Erem

08 Jan 2018

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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

  • 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 $1k or more 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

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  • Promoted

    ANZ Platinum

    0% p.a. for 18 months and then 20.24% p.a. (2.00% balance transfer fee)

    20.24% p.a.

    $87 $0 when you spend over $20,000 p.a, $0 in the first year

    $0 annual fee in the first year and 0.0% p.a. first 18 months on balance transfers with a 2% Balance Transfer fee. 55 days interest free days on purchases when you pay your account in full each month. Includes complimentary insurances. A minimum credit limit of $6,000 applies. Winner Mozo Expert Choice Award 2018 - Premium Card Benefits.0.0

    • 0% p.a. for 18 months and then 20.24% p.a. (2.00% balance transfer fee)

    • $87 $0 when you spend over $20,000 p.a, $0 in the first year

    • 20.24% p.a.

    • 55

    • 20.24% p.a.

    • 2%

    Read our Mozo Review to learn more about the Platinum

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  • 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. $64 annual fee in the first year ($129 after)
.

    • 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 31 December 2019

    HSBC Platinum Credit Card (12 Month Balance Transfer Offer)

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

    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. Plus, two airport lounge passes every year.

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

    • $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

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.

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