Using a credit card this Christmas? Here’s how to avoid a new year debt hangover


For many Aussies, Christmas is the time of year to indulge, whether that’s having a festive drink or an extra slice of cake. 

But for some, it can often mean spending more than intended on gifts, groceries and more. And rather than just starting the new year with tighter jeans, you’re instead left with a large amount of credit card debt. 

So if you’re planning to put some or all of Christmas on your credit card this year, having a tight repayment plan in place for the new year is essential. To get you started the right way, we’re sharing two of our top plastic picks that can help keep costs low this Christmas.

0% introductory rate credit card

If it’s your first time shopping around on credit cards, the many options available can be overwhelming. But considering that you’ll probably be using your plastic for the festive period, a 0% introductory rate credit card might be a good option. This is a type of credit card that features no interest on purchasesfor a specific period of time, making it an easy way to spread the cost of Christmas. 

Just keep in mind that once the interest-free period is up, the card will then revert to its new purchase rate, which can range anywhere 11% - 14%. So if you are thinking about continuing to use the card in the new year, be sure it has a low revert rate.

Bankwest Breeze Mastercard
  • 0% purchase rate for 15 months (then 10.99%)
  • Low $49 annual fee
  • Apple and Google Pay available
Find out more

Keeping costs low has never looked sweeter with the Bankwest Breeze Mastercard, thanks to its 0% purchase rate offer for 15 months (10.99% after). Aside from interest-free spending this credit card also comes with a manageable $49 annual fee, the option to add up to three additional cardholders and the ability to pay via Apple Pay, Google Pay or the Bankwest Halo Ring. Just keep in mind that if you are planning to do your Christmas shopping with international online stores, you will be charged a 2.95% foreign exchange margin for each transaction.

Low rate credit card

As the name suggests, a low rate credit card comes with a low, ongoing interest rate below 12%, which also might be ideal if you plan to continue using the card once Christmas is over. However, there is a way to avoid being charged with interest, as these cards typically come with interest-free days (usually up to 44 to 55 days). This means any purchases made within those days won’t incur any charges, so long as you pay the balance off before the interest-free period ends.

St.George Vertigo Platinum
  • 12.99% purchase rate
  • $49 annual fee in the first year (then $99)
  • $300 cashback offer
Find out more

Keen to get a little more bang for your buck this Christmas? Then why not check out the St.George Vertigo Platinum credit card. This budget-friendly plastic has an ongoing purchase rate of 12.99% and a low $49 annual fee in the first year ($99 after). You’ll have up to 55 interest-free days, the option to pay via PayID or Apple, Google and Samsung Pay. Plus if you apply before 30 March 2021 and spend $900 on eligible purchases within the first 90 days of being approved, you’ll get $300 cashback!

Want to compare more low rate credit card options? Head on over to our credit card comparison tool or get started with the offers below.

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