Dollar Saver Tip #12
Save $150+
Tip overview:
Used a credit card to pay for Christmas? You could save over $150 in a year with a 0% balance transfer credit card.
Amy here, Finder's credit card senior writer.
The cost of living crunch is putting many people under pressure, especially over the holiday season. Our in-house research shows the average Aussie spent $1,361 on festivities, and 13% of people relied on a credit card to get by.
This means millions of Australians have started 2023 with a debt hangover, which is an expensive way to start the new year.
Enter 0% balance transfer credit cards. These cards offer an introductory 0% interest rate on debt that you move over from your current credit card to the new one with a different lender – and right now, you can get 36 months interest-free.
Did you know?
The average standard credit card interest rate is 19.94%, according to Finder analysis of RBA data.
Paying off a Christmas credit card debt of $1,361 in a year would cost you around $151 in interest.
If you moved that debt to a 0% interest balance transfer card, you'd pay no interest during the introductory period. The higher your credit card balance, the higher your potential savings.
But take note: higher interest rates apply at the end of the 0% balance transfer period if you're still paying it off, and some cards have one-time balance transfer fees of up to 3%.
