Time to pay off summer spending: Crushing credit card debt in 2023

Mozo found 106 balance transfer cards that could help you get on top of your debt

2 February 2023

  • Save up to $397 on average by transferring a $4,200 credit card debt on a card with a 17% interest rate using a 12 month 0% balance transfer offer
  • Mozo’s database currently has 106 balance transfer offers, with 79 offering zero interest 
  • ABS figures show that household spending has increased by 11.40% year on year, with discretionary spending increasing by 6.30%
  • Citi Clear and Virgin Money Low Rate cards are offering 36 months at 0%

With the latest ABS data for November showing that household spending increased by 11.40%, compared to the same time last year one thing is certain, Australians have been enjoying a summer of spending. But as the festivities end, many will be stressed about how to face their growing credit card debt. Mozo found taking advantage of the 0% period on a balance transfer credit card could save $397 on average over the next twelve months and eliminate summer debt. 

“Last year, the cost of everything rose steeply and many people were caught off guard, needing to put more items on their credit card than usual. Now is the time to tackle your debt head on and get it paid off by the end of the year,” says Claire Frawley, Mozo Personal Finance Expert. 

Mozo’s database currently has 106 balance transfer offers, with 79 offering 0%. Citi Clear and Virgin Money Low Rate are offering an impressive 36 months at zero interest. 

“When comparing balance transfer offers, it’s important to look at the length of the 0% interest period and make sure it is a realistic time frame to repay the debt. Currently there are balance transfer offers from 5 to 36 months in the Mozo database.”

Mozo found that although some cards might have generous interest free periods, they can be accompanied by higher annual fees and a transfer fee which can be up to three per cent of the transferred balance. 

“After signing up for a balance transfer credit card it’s important to make the most of the interest free period to pay down your debt, rather than just kicking the problem down the road,” says Frawley. 

It’s important to remember that any new purchases will be excluded from the 0% interest offer and will be charged at the higher purchase rate.

Top balance transfer tips:

  • Use an online calculator to work out how much you can afford to repay each month and how long it will take you to pay off your debt 
  • Choose a card with an interest free period that is realistic for you to pay off your total
  • Create a repayment plan to pay off the debt in full before the zero interest period ends
  • Watch out for fees on the balance transfer card 
  • Don’t make any new purchases on the credit card 


Notes: Mozo compared the cost of paying off credit card debt of $4,200 using 0% balance transfer cards with the cost of a card with the average interest rate of 17%. Mozo assumed the debt was paid off in full in equal monthly repayments during the 0% period and there was no additional spending and included balance transfer fees, annual fees and introductory annual fee waivers in calculations. Compared against paying off the existing debt on the “average” credit card with 17% purchase rate, $135 annual fee. ABS Monthly Household Spending Indicator November 2022