Deliverance from Debt: Your Credit Card Management Guide

Kill your credit card debt with these 8 tips

Tip: #1: Pay on time

The first tip is obvious for some and not so for others. Drum-roll please…

Always pay your credit card debt on time! Doing this will keep your credit history intact. A bad credit rating means buckles chance of getting a loan, a mortgage or another credit card. The credit reporting system means lenders can see when you’ve missed a payment if you go to apply for another financial product. This is particularly important for people looking to transfer their credit card debt to another card under a balance transfer facility.

Low Balance Transfer Credit Cards

Tip: #2: Pay more than the minimum

If you can, pay more than the minimum payment required each month. Even better, pay the whole thing off each month and then start afresh.

Every little bit extra you can pay above the minimum each month will reduce the cash you have to fork out to cover interest charges down the track - this may mean a few sacrifices to get your debt under control.

If you have a $2,000 debt at just shy of 20% interest p.a. and you only pay the minimum amount each month of 2%, it will take you over forty years to pay back, and you will have paid over $5,000 in interest. However, pay an additional $50 above the minimum, you’ll pay the card off in three years and you will have paid just $500 in interest.

The numbers speak for themselves.

Tip: #3: Introductory offers should also be approached with caution

Whether it’s a balance transfer promotional offer or an introductory offer on purchases, if you can’t pay back the balance in the introductory period, don’t take the offer.

You need to know that the introductory period that you’re looking at is long enough to accommodate your repayment budget. Jumping at a 0% rate, failing to pay off your debt before the period expires, then being clobbered by a high regular rate of interest will be a disaster for your bank balance.

One tip here if you are looking for a balance transfer offer, is to check what the revert rates are if you are unable to repay the debt in time. Some cards revert to the purchase rate, whereas some revert to what is typically a higher cash advance rate. Learn more about which cards revert to their standard purchase rate and which don't.

What rate does my balance transfer revert to?

Long-Term Balance Transfer Credit Cards

Rates last updated September 25th, 2018
Name Product Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Product Description
St.George Vertigo Platinum - Online Offer
12.74% p.a.
0% p.a. for 25 months
$99 p.a.
Save with 0% p.a. interest for up to 25 months on balance transfers with no BT fee. Plus, platinum perks, including overseas travel insurance.
Westpac Low Rate Card
13.49% p.a.
0% p.a. for 24 months with 1% balance transfer fee
$0 p.a. annual fee for the first year ($59 p.a. thereafter)
Offers a 0% for 24 month balance transfer option, first year annual fee waiver and a competitive purchase rate.
Citi Clear Platinum - Exclusive Offer
14.99% p.a.
0% p.a. for 24 months with 1.5% balance transfer fee
$49 p.a. annual fee for the first year ($99 p.a. thereafter)
finder Exclusive: Ends 30 September 2018 Receive 0% p.a. for 24 months on balance transfers and a discounted annual fee in the first year. Plus, access to Citi World Privileges.
Suncorp Clear Options Platinum Credit Card - Exclusive Offer
20.74% p.a.
0% p.a. for 18 months
$99 p.a. annual fee for the first year ($129 p.a. thereafter)
finder Exclusive: Ends 30 September 2018 Receive a long 18-month, 0% p.a., no fee balance transfer and earn Suncorp Rewards Points or Qantas Points per $1 spent.
Virgin Australia Velocity Flyer Card - Bonus Points Offer
20.74% p.a.
0% p.a. for 18 months
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
Earn up to 60,000 bonus points in the first 3 months with a $64 first year annual fee. Plus, the chance to win 1 million Velocity Points.
Citi Clear Platinum Credit Card
12.99% p.a.
0% p.a. for 14 months
$0 p.a. annual fee for the first year ($99 p.a. thereafter)
Offers a 0% p.a. for 14 months balance transfer and $0 first year annual fee. Plus, insurance covers and Citibank Dining Program perks.
ANZ Low Rate
12.49% p.a.
0% p.a. for 15 months
$58 p.a.
Save with a 0% p.a. introductory rate on balance transfers for 15 months with no BT fee. Plus a low 12.49% p.a. interest rate on purchases.
NAB Low Fee Platinum Card
19.74% p.a.
0% p.a. for 24 months with 2% balance transfer fee
$90 p.a.
Offers 7 complimentary insurance covers, a 0% p.a. for 24 month balance transfer and access to a 24/7 concierge service for a $90 p.a. annual fee.
Virgin Money Low Rate Credit Card
11.99% p.a.
0% p.a. for 14 months
$49 p.a.
Offers a $49 annual fee, 10% cashback on purchases made in the first 3 months (capped at $100) and 0% p.a. for 14 months on balance transfers.
St.George Vertigo Visa
13.74% p.a.
0% p.a. for 16 months
$55 p.a.
Get 0% p.a. interest for up to 16 months on balance transfers with no BT fee. Plus, a competitively low annual fee and purchase rate.
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
20.74% p.a.
0% p.a. for 18 months
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
Save with $64 first year annual fee and 0% p.a. balance transfer offer. Plus, the chance to earn 1 million Velocity Points. Ends 31 Oct 2018.
HSBC Platinum Credit Card
19.99% p.a.
0% p.a. for 22 months with 2% balance transfer fee
$129 p.a.
Offers a 0% p.a. for 22 months balance transfer and an annual fee refund each year when you spend $6,000. Plus, 2 airport lounge passes every year.
NAB Low Fee Card
19.74% p.a.
0% p.a. for 18 months with 2% balance transfer fee
$30 p.a.
Receive complimentary purchase protection insurance, a 18 month balance transfer offer and special offers from Visa Entertainment.
Citi Rewards Platinum Credit Card
20.99% p.a.
0% p.a. for 24 months with 1.5% balance transfer fee
$49 p.a. annual fee for the first year ($149 p.a. thereafter)
Receive a long-term BT offer, earn Citi Reward Points and receive complimentary travel insurance.
ANZ First Visa Credit Card
19.74% p.a.
0% p.a. for 18 months with 2% balance transfer fee
$30 p.a.
Get up to 18 months interest-free on balance transfers and save with a low $30 annual fee. Plus, up to 44 days interest-free on purchases.
Citi Platinum Credit Card
20.99% p.a.
0% p.a. for 12 months
$49 p.a. annual fee for the first year ($149 p.a. thereafter)
Earn 10,000 monthly bonus reward Points for 20 months (200,000 total), enjoy a 0% p.a. balance transfer offer, plus, a $49 first year annual fee.
Bank of Melbourne Vertigo Platinum
12.74% p.a.
0% p.a. for 24 months with 1% balance transfer fee
$99 p.a.
Offers a long-term balance transfer, low standard variable purchase rate, complimentary travel insurance and access to a 24/7 personal concierge service.
ANZ Platinum Credit Card
19.74% p.a.
0% p.a. for 18 months with 2% balance transfer fee
$0 p.a. annual fee for the first year ($87 p.a. thereafter)
Receive a 0% p.a. for 18 month balance transfer offer and a $0 first year annual fee. Plus, complimentary overseas travel and medical insurance.
Citi Signature Credit Card
20.99% p.a.
0% p.a. for 12 months
$195 p.a. annual fee for the first year ($395 p.a. thereafter)
Earn 15,000 monthly bonus reward Points for 20 months (300,000 total), enjoy a 0% p.a. balance transfer offer, plus, a $195 first year annual fee.
Bank of Melbourne Vertigo Visa Credit Card
13.74% p.a.
0% p.a. for 16 months
$55 p.a.
Enjoy 0% p.a. interest for up to 16 months on balance transfers with no BT fee. Plus, a competitively low annual fee and purchase rate.
BankSA Vertigo Visa
13.74% p.a.
0% p.a. for 16 months
$55 p.a.
Enjoy a 0% p.a. interest rate for up to 16 months on balance transfers with no balance transfer fee. Plus, a low ongoing purchase rate.
Bankwest Zero Platinum Mastercard
17.99% p.a.
2.99% p.a. for 9 months
$0 p.a.
Offers a $0 annual fee, 0% foreign transaction fees, complimentary international travel insurance and a balance transfer offer.
Bankwest Qantas Platinum Mastercard
20.49% p.a.
2.99% p.a. for 9 months
$160 p.a.
Enjoy 0% foreign transaction fees, complimentary travel insurances and earn 0.5 Qantas Points per $1 spent on eligible purchases.
Bankwest Qantas Mastercard
20.49% p.a.
2.99% p.a. for 9 months
$100 p.a.
Receive a complimentary Qantas Frequent Flyer membership and earn 0.5 Qantas Points per $1 spent on eligible purchases.
Bankwest Zero Mastercard
17.99% p.a.
2.99% p.a. for 9 months
$0 p.a.
Features an ongoing $0 annual fee. Plus, receive up to 55 days interest-free on purchases and a 2.99% p.a. for 9 months on balance transfers.
Bankwest Breeze Classic Mastercard
0% p.a. for 13 months (reverts to 12.99% p.a.)
0% p.a. for 13 months with 2% balance transfer fee
$79 p.a.
Receive purchase and balance transfer offers of 0% p.a. for 13 months, a low ongoing rate and up to 55 interest-free days on purchases.
Bankwest Breeze Platinum Mastercard
0% p.a. for 13 months (reverts to 12.99% p.a.)
0% p.a. for 13 months with 2% balance transfer fee
$99 p.a.
Receive a 0% p.a. interest rate on purchases and balance transfers for 13 months, complimentary travel insurance and 0% foreign transaction fees.
Bankwest Qantas World Mastercard
20.49% p.a.
2.99% p.a. for 9 months
$270 p.a.
Earn uncapped Qantas Points per $1 spent on eligible purchases, pay 0% foreign transaction fees and receive complimentary travel insurance.

Compare up to 4 providers

Tip: #4: Haggle with your provider

Competition is fierce among credit card providers. They are always keen to keep their customers on board. You can ask your lender for an interest rate review. What’s the worst that can happen - they say, ‘no’? Your provide is all too aware of the promotional offers they give new customers, and the offers other banks can provide to you if you jump ship. They’re not going to see you walk away for the sake of a slight adjustment in your interest rate.

Tip: #5: Limit yourself

Credit limit increase invitations are something you have to agree to receive from the bank. But who’s ever heard of a credit limit decrease invitation? No one, that’s who. That’s because they don’t exist.

Your bank wants to see you continue to use the card, that’s because most of us are debt revolvers - carrying a balance from month to month. This is where the lender makes their money. Why not lower your credit limit as you pay your card off? This will stop you from spending the money you’ve paid off the card.

Just remember, each time you apply for a credit limit increase, it gets recorded on your credit file.

Tip: #6: Use cash whenever possible

Cash is king! Try to use cash where you can. Using cash makes it easier to stay out of debt. Of course, this may not be practical all the time, especially since buying a car with cash is likely to earn you a visit from the drug squad. Whether you're using cash or a debit card (which is really just electronic cash), it's cash is a great way to only spend what you have.

Rates last updated September 25th, 2018
Name Product Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Product Description
Virgin Australia Velocity Flyer Card - 0% Interest Offer
0% p.a. for 14 months (reverts to 20.74% p.a.)
0% p.a. for 6 months
$129 p.a.
Enjoy 0% p.a. interest on purchases for 14 months. Plus, the chance to earn 1 million Velocity Points. Ends 31 Oct 2018.
Qantas Premier Everyday
19.99% p.a.
4.9% p.a. for 24 months
$0 p.a. annual fee for the first year ($49 p.a. thereafter)
Take advantage of up to 40,000 bonus Qantas Points, a $0 first year annual fee plus complimentary overseas travel insurance.
Westpac Altitude Platinum Card - Qantas
20.24% p.a.
$50 p.a. annual fee for the first year ($200 p.a. thereafter)
Earn 60,000 bonus Qantas Points when you spend $3,000 within 90 days of card approval. Plus, a $50 first year annual fee.

Compare up to 4 providers

Tip: #7: If you have a debt on your credit card, make sure it's a low rate

Always check to understand what interest rate your credit card offers. Not all credit cards have the same rate and the variance is quite large. Check out some of the low rate cards in market at the moment.

Low Interest Rate Credit Cards

Tip: #8: Ask about hidden charges

We’re all aware of credit card surcharges, the extra fees that comes with buying a flight online, for example, can make you cringe. In some cases it can be beneficial to use an escrow service, like paypal, to pay for goods or services that attract a credit card surcharge.

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Frequently Asked Questions

Got any extra tips? Let us know how you deal with credit card debt.
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Credit Card Offers

Important Information*
Citi Clear Platinum Credit Card

Interest rate

12.99

Annual fee

0*

*$99 p.a. after first year

Westpac Altitude Platinum Card - Qantas

Interest rate

20.24

Annual fee

50*

*$200 p.a. after first year

ANZ Low Rate

Interest rate

12.49

Annual fee

58

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2 Responses

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    sunnyApril 10, 2013

    how do credit cards work

Credit Cards Comparison

Rates last updated September 25th, 2018
Name Product Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Product Description
Citi Clear Platinum Credit Card
12.99% p.a.
0% p.a. for 14 months
$0 p.a. annual fee for the first year ($99 p.a. thereafter)
Offers a 0% p.a. for 14 months balance transfer and $0 first year annual fee. Plus, insurance covers and Citibank Dining Program perks.
ANZ Low Rate
12.49% p.a.
0% p.a. for 15 months
$58 p.a.
Save with a 0% p.a. introductory rate on balance transfers for 15 months with no BT fee. Plus a low 12.49% p.a. interest rate on purchases.
Westpac Altitude Platinum Card - Qantas
20.24% p.a.
$50 p.a. annual fee for the first year ($200 p.a. thereafter)
Earn 60,000 bonus Qantas Points when you spend $3,000 within 90 days of card approval. Plus, a $50 first year annual fee.
St.George Vertigo Visa
13.74% p.a.
0% p.a. for 16 months
$55 p.a.
Get 0% p.a. interest for up to 16 months on balance transfers with no BT fee. Plus, a competitively low annual fee and purchase rate.

Compare up to 4 providers

* The credit card offers compared on this page are chosen from a range of credit cards finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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