| In a report released by the Reserve Bank of Australia (July 2007), Australians withdrew a massive AU$1 billion in cash advances on their credit cards. According to these figures the average Australian would have clocked up approximately AU$3,000 in credit card debt alone. So it's no suprised that over the next eighteen months the average credit card interest rate is predicted to rise to 19%.
In an attempt to stay in such a competitive market, credit card providers are now offering special incentives to customers. These include 0% balance transfers, rewards programs and attractive ongoing interest rates. By offering a lower rate, financial institutions are losing out on revenue and this lost expense needs to be recouped somehow. Look out for:
Paying by credit should always be used wisely which is why it pays to be familiar with the different characteristics of the various types of low interest credit cards. Choosing the right mix of interest rate, fees and features for you and work to your benefit. Some of the cheapest card rates in Australia are avaliable with Bankwest, St George, Aussie Home Loans, Citibank and Defcredit. |