Save $588 with a lower rate | Dollar Saver tip #54
Save: $588
Tip overview:
By choosing a credit card with a lower interest rate you could save $588 a year and pay your debts off faster.
The average Australian with a credit card has a balance of $2,993. And with the average standard interest rate for a credit card now 19.82% p.a., you'll pay a lot of interest if you don't pay that off fast.
One way to make this easier is by doing a quick comparison and getting a card with a much lower interest rate.
Did you know?
Australians spent a record $34.3 billion on credit cards in August this year.
Let's say you spent $2,993 on your card, with the average 19.82% rate. If you put $100 a month to paying this debt off it would cost you $1,169 in interest.
And it would take you 3.5 years to clear your balance.
But if you had the same balance and the same repayments on a credit card with a lower interest rate of 11.99% p.a., you'd pay it off 6 months faster and pay $581 interest.
That means you'd save around $588 in interest.
A lower rate can literally save you hundreds of dollars when you repay purchases over time.
