Balance Transfers: Sin or Saint?

Balance Transfers: Sin or Saint?

Your credit card probably took a fair beating over Christmas and the holidays. So what’s the best way to tackle credit card debt?

At present you may notice lots of banks are marketing special low rate balance transfer offers. Awesome, you might say. Low interest rates must mean lower repayment costs, right? In the short-term this holds true, but in the long-term the banks have a few tricks to play.

We’ve done the maths, and it seems the most important factor to consider is not a card’s interest rate, but the speed in which you plan to pay off the balance.

Using an average credit card balance of $3,000 and a standard “Big Four” Bank credit card, we used our super-easy health check tool to run three common repayment methods to see which current balance transfer deals offers the best savings. The results were surprisingly varied.

*Compared with the standard ‘Big Four’ credit card

Just remember, match your card with your repayment plan! And read the fine print: don’t let sneaky interest rates and annual fees catch you out.

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