Covid-19 is the financial “wake up call” Aussies need, says Mozo

Ceyda Erem

14 Jul 2020

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Over the last few months, we’ve seen the Covid-19 pandemic affect all aspects of day-to-day life, from grocery shopping to heading into work. 

But according to new Mozo research, it seems like it may have had a positive impact on the way we think about debt. 

Before the pandemic hit, a considerable 67% of Aussies believed that debt was a ‘necessary part of everyday life’, but now one in four are reportedly working toward erasing debt for good. 

“Historically, Australians haven’t been afraid of debt, particularly through our love of credit cards. We’ve racked up debt with the assumption that job security and a steady paycheck is a relatively safe bet, but a global pandemic has tipped that notion on its head as unemployment soars,” said Mozo Director, Kirsty Lamont. 

“For many people, Covid19 has been a wake up call to get their finances in order, and eliminating debt is a key part of that.” 

Mozo found that 68% of Australian households currently have some form of personal debt, like a credit card or personal loan, while 73% of those with debt are concerned about the level it has reached, with one in five unsure how they will repay it. 

Other financial goals Aussies are keen to work on include building an emergency savings fund, spending less on non-essentials and no longer spending beyond their means. 

Taking the first step toward banishing credit card debt 

Although credit card balances have fallen by 8.5% in the last two years and the average balance sits under $2,000, many Aussies may be in the dark about making their first move. 

One option may be to take out a balance transfer credit card. These allow you to transfer the balance of your current credit card onto another with a 0% interest rate for a certain period of time. This potentially allows Aussies to save a bundle in interest. 

In fact, following a Mozo number crunch using the average credit card debt ($4,200) and a typical interest rate of 16.88%, a balance transfer card with a 0% interest rate could deliver savings of up to $560 over 12 months.

However Lamont has warned that in order for a balance transfer card to be effective, Aussies will need to have a repayment plan in place to avoid being stung by interest. 

“While balance transfer cards are a great way to put all your debt in one place, it’s crucial for you to use a card with an interest free period that is attainable. It pays to be aware that you can be hit with some massive interest price hikes after the interest free period,” said Lamont.

If you’d like to find out more about how balance transfer credit cards work, check out our handy guide

Or if you’re ready to eradicate your credit card debt once and for all, head on over to our balance transfer credit card comparison tool!

Compare balance transfer credit cards

Rates updated daily. Advertiser disclosure.

  • Apply By 31 May 2021

    Bendigo Bank Low Rate Credit Card

    0% p.a. for 18 months and then 11.99% p.a. (2.00% balance transfer fee)

    11.99% p.a.

    $45

    0% p.a. balance transfer for 18 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 18 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

    Details Close

  • Bankwest Breeze Mastercard

    0% p.a. for 26 months and then 10.99% p.a. (2.00% balance transfer fee)

    10.99% p.a.

    $49 $0 in the first year

    Enjoy 0% p.a on balance transfers for 26 months (2% BT fee applies) then 10.99% thereafter. No annual fee for the first year. Limited time only. Other fees, T&Cs apply. New Mastercard Breeze customers only.

    • 10.99% p.a.

    • -

    • 0% p.a. for 26 months and then 10.99% p.a. (2.00% balance transfer fee)

    • 21.99% p.a.

    • 55

    • 0.0

    • 2.95%

    • $49 $0 in the first year

    • $25.00

    • 2%, Min $4.00

    Read our Mozo Review to learn more about the Breeze Mastercard

    Details Close

  • St.George Vertigo

    0% p.a. for 24 months and then 21.49% p.a.

    13.99% p.a.

    $55 $0 in the first year

    0% p.a. for 24 months on balance transfers requested at card application. No balance transfer fee. Rate then switches to applicable variable cash advance rate. First year annual card fee waived for the first year ($55 thereafter). Available to new cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021. Mozo Experts Choice Balance Transfer Credit Card Winner 2020^.

    • 13.99% p.a.

    • -

    • 0% p.a. for 24 months and then 21.49% p.a.

    • 21.49% p.a.

    • 55

    • 0.0

    • 3.00%

    • $55 $0 in the first year

    • $15.00

    • 2%, Min $2.50

    Read our Mozo Review to learn more about the Vertigo

    Details Close

  • Hot Deal Limited time balance transfer offer

    Westpac Low Rate

    0% p.a. for 24 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 24 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 24 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

  • St.George Amplify Platinum

    0% p.a. for 22 months and then 21.49% p.a. (1.50% balance transfer fee)

    0% p.a. for 7 months then 19.74% p.a.

    $99 $0 in the first year

    Get 0% p.a. for 22 months on balance transfers requested at card application. 1.5% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. Bonus 0% p.a. on purchases for 7 months. Rate then switches to applicable variable purchase rate. Get your first year annual card fee waived for the first year ($99 thereafter). New cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021.

    • 0% p.a. for 7 months then 19.74% p.a.

    • 0% p.a. for 7 months

    • 0% p.a. for 22 months and then 21.49% p.a. (1.50% balance transfer fee)

    • 21.49% p.a.

    • 55

    • 0.0

    • 3.00%

    • $99 $0 in the first year

    • $15.00

    • 2%, Min $2.50

    Read our Mozo Review to learn more about the Amplify Platinum

    Details Close

^See information about the Mozo Experts Choice Credit cards Awards