Australians are carrying $18 billion of credit card debt and there are dozens of zero per cent interest offers on outstanding balance transfers.
Share this @internewscast.com

Australians are carrying $18 billion of credit card debt and there are dozens of 0 per cent interest offers on outstanding balance transfers.

But should you use a new card to pay off the old?

There are more than 60 of these offers on the market, luring customers to swap high-interest debt for what looks like a free ride.

Australians are carrying $18 billion of credit card debt and there are dozens of zero per cent interest offers on outstanding balance transfers.
Australians are carrying $18 billion of credit card debt and there are dozens of zero per cent interest offers on outstanding balance transfers. (9News)

When used right, the cards can buy people breathing room.

But when the cards are used wrong, people can be redecorating debt rather than escaping it.

In order to win smart, Nine’s money editor Effie Zahos said people should play the long game.

The longer the interest-free period, the more time people have to pay it off.

ANZ’s Low Rate card leads with 26 months followed by Virgin, Bankwest and Westpac which offer up to 24 months.

Customers should also do their research and know the real rate.

There are more than 60 of these offers in the market, luring customers to swap high-interest debt for what looks like a free ride.
There are more than 60 of these offers in the market, luring customers to swap high-interest debt for what looks like a free ride. (9News)

ANZ charges a 3 per cent fee to move your old debt, plus a $58 annual fee in years two and three.

On a $5000 debt, these fees add $266 in costs, meaning that 0 per cent rate is effectively 5.32 per cent over the 26 months.

It is also important for people to have a plan and stick to it.

Calculate your overall debt and divide it by the total number of promotional months. Set up automated payments to ensure that you clear the full balance before the interest-free term ends.

If people miss the deadline, they could face double-digit interest rates that quickly erase any savings.

The details shared on this website are meant for general information purposes only and are not tailored as personal financial advice. This content has been compiled without considering your individual goals, financial circumstances, or needs. Prior to taking any action based on this information, evaluate its relevance in light of your personal objectives, financial condition, and requirements.

Share this @internewscast.com
You May Also Like
Anthony Albanese and James Marape sign a defence communique.

“Australia Makes Historic Move in 70 Years, Delivers Significant Setback to China”

Australia and Papua New Guinea are on the brink of forming a…
Suspect shot after four injured by vehicle and stabbing at UK synagogue

Suspect shot following vehicle and stabbing attack injuring four at British synagogue

Authorities are dealing with a “major incident” near a synagogue in northern…

Lawyer states Erin Patterson to contest murder convictions linked to fatal mushroom lunch

Patterson’s attorneys have a period of 28 days to file the necessary…

Renowned Scientist and Conservationist Jane Goodall Passes Away at 91

Key Points Goodall revolutionized wildlife research, sparking public interest in her cherished…

Australian Government Prepared to Help After Six Australians Detained in Gaza Flotilla

Six Australians in the Gaza aid flotilla have been detained by the…
An Optus phone sign hangs above its store in Sydney

Big Companies Like Optus and Netflix Made Billions Without Paying Taxes

More than a quarter of large companies in Australia paid no income…
Adelaide's Dry Creek Wetlands crash

“Truck Drivers Save Man from Burning Car: ‘He Owes Us a Beer.'”

A brave truck driver recounted the moment he and a coworker stepped…
Brisbane temperature

Record-breaking October heat expected for Australian capital

Queensland’s capital is set to swelter under its hottest October day in…
Global Sumud Flotilla

Australian Activists Detained Following Israeli Navy’s Interception of Gaza Aid Flotilla

The Department of Foreign Affairs and Trade (DFAT) stated that it is…
US President Donald Trump keeps posting what appears to be an AI-generated video of a man in a sombrero and moustache — but why?

Why is Trump frequently sharing this misleading video of a man in a sombrero and mustache?

US President Donald Trump keeps posting what appears to be an AI-generated…
Chris Robertson has been identified as the 49-year-old found dead at a workshop on O'Sullivan's Beach Road in Lonsdale, an industrial suburb in Adelaide, yesterday.

Father Discovered Deceased in Workshop Due to ‘Deliberate Assault’

A father of two, whose body was discovered at an Adelaide workshop,…
Commonwealth Bank customers have been left unable to check their balances.

Commonwealth Bank Suffers Significant Disruption as Online Banking Services Crash

Commonwealth Bank is experiencing a significant outage, leaving some customers unable to…