Whether you’ve overspent at Christmas, racked up a big bill on a much needed holiday or just have a guilty habit of carrying a balance on your plastic, carrying debt around on your shoulders is never fun.
And although figures from the Australian Banking Association recently showed that Aussies have cleared $260 million off our collective credit card debt last year, there’s still a whopping $52.2 billion owing. Ouch.
But the good news is, there are plenty of options out there to help you clear that dark debt cloud and get your money back on track. So if one of your goals for this month is to blast your bad debt once and for all, take the first step by checking out some of our Mozo Editors’ picks for debt consolidation personal loans and balance transfer credit cards.
Harmoney Unsecured Personal Loan
Fixed interest rates from 6.99% (7.69% comparison rate^^)
Free extra repayments and no early repayment penalty
Mozo Experts Choice Excellent Credit Personal Loan Winner
A peer-to-peer personal loan from Harmoney might be just what you need to help you get a handle on your debt this year. The rates on offer start quite low, and while there is an application fee, you only pay this when your loan is successfully funded through the platform, and there are no ongoing fees to worry about.
If you’d like to stick with a big bank while consolidating your debt, check out the ANZ unsecured personal loan. This fixed rate option makes it super easy to budget, since you’ll always know what your repayment will be. But if you prefer a little more flexibility in paying your loan off quicker, there’s also a variable rate option you can consider.
Bank Australia Lifestyle Personal Loan
11.89% interest rate (12.94% comparison rate^)
No ongoing fees ($150 upfront fee applies)
Borrow from $1,000
While you’re in the business of crushing debt, why not opt for an award winner? The Bank Australia Lifestyle personal loan comes with no ongoing fees, the option to make extra repayments and no early repayment penalty. It allows you to borrow amounts starting at $1,000 for terms up to 10 years.
Balance transfer cards
Woolworths Everyday Platinum Credit Card
0% balance transfer offer for 14 months
$0 annual fee in the first year ($49 after)
Mozo Experts Choice Balance Transfer and Low Fee Platinum card award winner
You’ll have a cruisy 14 months to pay off your existing debts when you take advantage of the 0% balance transfer offer on the Woolworths Everyday Platinum card. Plus, once you’ve wiped away your debt, you’ll be left with an award-winning credit card that will help you shave dollars off your weekly grocery shop. Win-win!
American Express Essential Credit Card
0% balance transfer offer for 12 months (3.00% BT fee)
$0 annual fee
Mozo Experts Choice Credit Card Provider of the Year
Another multi-award winner, the American Express Essential card lets you take 12 months interest free to pay off your debts. And with no annual fee to worry about and a relatively low revert and regular purchase rate of 14.99%, this one’s very easy on the wallet both while you’re blasting debt and afterwards.
Bankwest Breeze Platinum Mastercard
0% balance transfer offer for 24 months (2% BT fee)
$99 annual fee
Mozo Experts Choice Low Rate and Balance Transfer Award Winner
The Bankwest Breeze Platinum is great if you don’t trust yourself to pay off your debts within a short time frame, since there’s a leisurely 24 months interest free on offer to make paying off your existing debts, well, a breeze. And although you should try to clear your whole balance in this time, the low 12.99% revert rate means it’s not the end of the world if you do have some leftover.
^The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are for the amounts and terms below, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may inﬂuence the cost of the loan. ^Based on $10,000 over 3 years ^^Based on $30,000 over 5 years