Switching cards can slash interest rate

Australians concerned about how much interest they are paying on the credit cards should consider switching, it has been claimed.

According to new research conducted on behalf of Aussie, Australians racked up more than $1,000 a piece on the credit cards during the 2009-10 holiday season.

The average Australian consumer now owes a whopping $3,200.

Meanwhile, almost a third – 29 per cent – said that they had racked as much as $2,500 on their card, while a further 19.9 per cent said they had spent between $2,500 and $10,000.

John Symond, founder of Aussie, told the Sydney Morning Herald most people believe that it will take them three months to pay of their debt, but claimed this could be unrealistic.

"That’s provided you started paying it back at the beginning of January, rather than racking up more debt during the Boxing Day sales," he said.

He suggested that with the large number of credit cards available on the market, switching could be a good idea, especially as there a number of zero interest deals currently available.

Earlier this month, figures from the Reserve Bank of Australia showed that credit card spending in Australia soared in November.

This article is brought to you by Mozo – Helping you compare credit cardsADNFCR-1761-ID-19585073-ADNFCR