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How Aussies can repay their $286 million credit card interest Christmas debt with a balance transfer

Aussies are carrying $286 million in credit card interest after Christmas. Take advantage of a balance transfer offer to repay your debt faster without the cost of interest.

Christmas is the time the our credit cards take the biggest hit, so it’s no surprise that Australians are now facing a post-holiday surprise in the form of sky-high interest and credit card debt. Not all hope is lost though, as there are some simple steps you can follow to take control of your credit card debt. Here we’ve unpacked just how much Aussie cardholders owe and the balance transfer offers that could help reduce your debt hangover in the new year.


Interest free balance transfer credit cards could be a lifeline for those who splurged at Christmas. And it seems many Australians agree – we’re noticing the number of people searching finder.com.au for balance transfers during the post-Christmas period is 158 percent higher than this time last year. Bessie Hassan, Consumer Advocate at finder.com.au

How much do Australians owe after Christmas?

You could say that Aussies are either overly generous or perhaps too flippant with their credit card purchases over Christmas time. Regardless, a forecast of the Reserve Bank of Australia reveals that the nation borrowed a whopping $27.5 billion on credit cards for purchases and cash-out transactions in December 2015. $3.2 billion of these transactions were spent on Christmas gifts alone. Now that the silly season has settled and the Christmas decorations have been put away, Aussie cardholders are faced with the reality of an average of $1,668 debt each and a collective $286 million in credit card interest to repay. Sadly, more than one in three cardholders (or 35%) aren’t expected to pay off their credit card bills in time. On the contrary, it’ll take roughly more than five months to repay the balance.

While these figures are worrying, here’s where debt consolidation strategies come in handy. If you want to fast-track your debt repayment without the cost of interest, an interest-free balance transfer credit card could be your answer.


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If you'd like to learn more about the Christmas Debt Hangover, have any questions about the points on this page or want more data (survey, analysis or credit card statistics) on this topic, please contact Bessie Hassan.

Bessie HassanBessie Hassan

Bessie@finder.com.au@bessie_hassan/in/bessiehassan
M: +61 402 567 568
P: +61 2 9299 7602
P: 1300 FINDER

How can I compare balance transfer credit cards?

One in three cardholders aren’t expected to pay off their Christmas credit card bills in time Bessie Hassan

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Balance transfers credit cards can be a savvy way to repay your debt faster without accruing interest along the way. However, as at the time of writing, there are currently 98 credit cards offering interest-free balance transfer deals for up to 20 months in the Australian market, it’s important to know what to look out for to find the right card for you. To make things easier, we’ve highlighted the important factors to consider and compare when looking for a credit card to drive your debt consolidation:

  • Length of balance transfer. There are a number of 0% balance transfer cards on offer, but the low interest will only be in place for an allotted period. Consider how much you owe and how long the 0% interest is in place to determine whether you can repay your debt before the revert rate kicks in.
  • Revert rate. Speaking of revert rate, make sure to compare this before applying. The revert rate refers to the interest rate your remaining balance will be charged if you’re unable to repay the total amount by the end of the introductory period. “They can revert to much higher rates if you don’t pay off the transferred debt during the transfer period. So it's a good idea to work out how much you need to repay each month to ensure your balance hits zero by the end of the balance transfer term,” suggests Ms Hassan.
  • Size of your debt. Most balance transfers restrict how much you can transfer to a percentage of the credit limit. This can vary from card to card (for example, from 70% to 100% of the credit limit), so it’s important to check this to confirm whether the card can support your debt. Plus, you’ll need to consider the size of your debt, the promotional interest rate and the length of the balance transfer to calculate how much you’ll need to repay each month to pay off the total amount before the promotion ends and the revert rate rolls in.
  • Other features and costs. While your main concern is the details of the balance transfer, it’s important to consider other costs and features of the card to ensure you can both afford and benefit from it. Look at the annual fee and one-off balance transfer fee (usually 1% or 2% or your transfer amount), in particular. It’s not recommended to use the card for anything but debt consolidation until the amount is entirely repaid, but you might want to consider if the card comes with a low interest rate on purchases or interest-free days if you plan to use the card after you’ve repaid the debt and the promotional offer has ended.

Long-Term Balance Transfer Credit Cards Comparison

Rates last updated September 21st, 2018
$
% p.a.

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Name Product Balance transfer rate (p.a.) Purchase rate (p.a.) Annual fee Amount Saved Product Description
St.George Vertigo Platinum - Online Offer
0% p.a. for 25 months
12.74% p.a.
$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
0% p.a. for 24 months with 1% balance transfer fee
13.49% p.a.
$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.
Suncorp Clear Options Platinum Credit Card - Exclusive Offer
0% p.a. for 18 months
20.74% p.a.
$99 p.a. annual fee for the first year ($129 p.a. thereafter)
finder Exclusive: Receive a long 18-month, 0% p.a., no fee balance transfer and earn Suncorp Rewards Points or Qantas Points per $1 spent.
Citi Clear Platinum - Exclusive Offer
0% p.a. for 24 months with 1.5% balance transfer fee
14.99% p.a.
$49 p.a. annual fee for the first year ($99 p.a. thereafter)
finder Exclusive: 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.
ANZ Low Rate
0% p.a. for 15 months
12.49% p.a.
$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.
St.George Vertigo Visa
0% p.a. for 16 months
13.74% p.a.
$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 - Bonus Points Offer
0% p.a. for 18 months
20.74% p.a.
$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.
NAB Low Fee Platinum Card
0% p.a. for 24 months with 2% balance transfer fee
19.74% p.a.
$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.
Citi Clear Platinum Credit Card
0% p.a. for 14 months
12.99% p.a.
$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.
Virgin Money Low Rate Credit Card
0% p.a. for 14 months
11.99% p.a.
$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.
Citi Simplicity Card
0% p.a. for 15 months with 1.5% balance transfer fee
19.99% p.a.
$0 p.a.
Save with 5% cashback on eligible purchases (capped at $50 per month) for the first 90 days from approval. Plus, a 15 month balance transfer offer.
ANZ First Visa Credit Card
0% p.a. for 18 months with 2% balance transfer fee
19.74% p.a.
$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.
HSBC Platinum Credit Card
0% p.a. for 22 months with 2% balance transfer fee
19.99% p.a.
$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.
Citi Platinum Credit Card
0% p.a. for 12 months
20.99% p.a.
$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.
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
0% p.a. for 18 months
20.74% p.a.
$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.
NAB Low Fee Card
0% p.a. for 18 months with 2% balance transfer fee
19.74% p.a.
$30 p.a.
Receive complimentary purchase protection insurance, a 18 month balance transfer offer and special offers from Visa Entertainment.
Bankwest Breeze Classic Mastercard
0% p.a. for 13 months with 2% balance transfer fee
0% p.a. for 13 months (reverts to 12.99% p.a.)
$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.
BankSA Amplify Card
3% p.a. for 36 months
19.49% p.a.
$0 p.a. annual fee for the first year ($79 p.a. thereafter)
Receive a 3% p.a. for 36 months balance transfer and earn Qantas or Amplify Points per $1 spent. Plus, enjoy a $0 annual fee for the first year.
Bank of Melbourne Vertigo Platinum
0% p.a. for 24 months with 1% balance transfer fee
12.74% p.a.
$99 p.a.
Offers a long-term balance transfer, low ongoing purchase rate, complimentary travel insurance and access to a 24/7 personal concierge service.
St.George Amplify Card
3% p.a. for 36 months
19.49% p.a.
$0 p.a. annual fee for the first year ($79 p.a. thereafter)
Take advantage of 3% p.a. interest on balance transfers for 36 months. Plus, a $0 first year annual fee and Amplify or Qantas Points per $1 spent.
BankSA Vertigo Visa
0% p.a. for 16 months
13.74% p.a.
$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.
American Express Velocity Escape Card
0% p.a. for 12 months with 1% balance transfer fee
20.74% p.a.
$0 p.a.
Earn uncapped Velocity Points on purchases, pay $0 annual fee for life and take advantage of a 0% p.a. for 12 months balance transfer offer.
Citi Rewards Platinum Credit Card
0% p.a. for 24 months with 1.5% balance transfer fee
20.99% p.a.
$49 p.a. annual fee for the first year ($149 p.a. thereafter)
Earn reward Points per $1 spent, take advantage of a 0% p.a. for 24 month balance transfer offer, plus complimentary international travel insurance.
Bankwest Zero Platinum Mastercard
2.99% p.a. for 9 months
17.99% p.a.
$0 p.a.
Offers a $0 annual fee, 0% foreign transaction fees, complimentary international travel insurance and a balance transfer offer.
Bank of Melbourne Amplify Card
3% p.a. for 36 months
19.49% p.a.
$0 p.a. annual fee for the first year ($79 p.a. thereafter)
Take advantage of a 3% p.a. for 36 months balance transfer offer, Amplify or Qantas points per $1 spent and enjoy a $0 annual fee for the first year.
Bankwest Zero Mastercard
2.99% p.a. for 9 months
17.99% p.a.
$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 Qantas Platinum Mastercard
2.99% p.a. for 9 months
20.49% p.a.
$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
2.99% p.a. for 9 months
20.49% p.a.
$100 p.a.
Receive a complimentary Qantas Frequent Flyer membership and earn 0.5 Qantas Points per $1 spent on eligible purchases.
Bankwest More Platinum Mastercard
0% p.a. for 6 months with 1% balance transfer fee
19.99% p.a.
$160 p.a.
Earn 2 More Rewards Points per $1 spent, 75,000 bonus points when you meet the spend requirement and save with 0% foreign transaction fees.
Bankwest Breeze Platinum Mastercard
0% p.a. for 13 months with 2% balance transfer fee
0% p.a. for 13 months (reverts to 12.99% p.a.)
$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 More World Mastercard
0% p.a. for 6 months with 1% balance transfer fee
19.99% p.a.
$270 p.a.
Earn 115,000 bonus points when you meet the spend requirement, receive complimentary travel insurance and a LoungeKey membership.
Bankwest More Mastercard
0% p.a. for 6 months with 1% balance transfer fee
19.99% p.a.
$100 p.a.
Earn 1.5 More Rewards Points per $1 spent, 19,500 bonus points when you meet the spend criteria and receive a 0% p.a. balance transfer offer.
Bankwest Qantas World Mastercard
2.99% p.a. for 9 months
20.49% p.a.
$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

If you’re burdened with debt following Christmas, you’re not alone and there are things you can do to take control of your credit card. An interest-free balance transfer credit card could be a worthwhile way to repay your debt faster without collecting interest in the mean time. As the market is currently saturated with competitive interest-free balance transfer offers, you’ll need to compare what’s out there to find the best debt consolidation solution for you.

It's not too late to plan a strategy to get rid of your debt

Sally McMullen

Sally McMullen is an editor at finder.com.au who is a credit cards, frequent flyer and travel money expert by day and music maven by night.

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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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