Credit Cards: Caught in the credit card spin cycle

Credit Cards: Caught in the credit card spin cycle <p>Here's how to come out squeaky clean</p> <p>Are you the kind of person who pays off every single cent of <a href="/credit-cards/">credit card</a> every month or do you sometimes or frequently have an outstanding balance owing and thus accrue interest? Unfortunately, the national debt of credit cards is climbing higher and higher, suggesting that the majority of us do not possess the necessary discipline to avoid interest charges.</p> <p>Data provided by the Reserve Bank of Australia shows that Australians owe a collective $41 billion on their cards which number 13.5 million. This is the equivalent of a debt of approximately $3,000 on each credit card currently issued.</p> <p>Interest rates on Australian credit cards range from 7.97% at the bottom end up to 19.65% at the top and the average rate is 15.62%. If we take this 15.62% interest rate and apply it to the average outstanding balance, we see that each card is costing approximately $468.60 in interest every year.</p> <p>Are you one of those Australians paying huge amounts in interest charges? If you do tend to revolve a large balance on your card and especially if you have a card with a high interest rate then there are some steps you can take to improve your situation.</p> <p>Firstly, make a serious plan to pay back what you owe. This is never easy and requires you to exercise rigid self control because the best thing you can do to help yourself get that balance down is to stop using the card altogether.</p> <p>Secondly, investigate changing your card to one that has a lower interest rate. Ideally you don't want to be paying any interest at all but in the short term, lower your costs by finding a card that will charge you less for the balance you are carrying.</p> <p>Thirdly, if you have compounded your situation by owning a second (or third, or fourth) credit card, investigate the low rate balance transfer offers many lenders advertise. For example you may be able to transfer your balance on to another card for six months with zero interest. This will give you some extra time to pay off the balance without being hit by interest at the same time.</p> <strong>How do I compare credit cards?</strong> <p>RateCity is the best website to shop around on for all credit cards, as well as most other financial products. At RateCity, you can use expert comparative data from CANSTAR CANNEX, Australia's leading financial research and ratings firm. CANSTAR CANNEX has analysed and evaluated hundreds of financial products to award five stars to only the very best. The CANSTAR CANNEX star ratings go much further than just looking at interest rates. They also take into account important features so you can be confident you are getting the best product.</p> <p>Use our easy search tools to compare credit cards at RateCity.</P> <p>SEARCH BY:</P> <ul> <li><a href="/credit-cards/lowest-rates/">Lowest Rates</a></li> <li><a href="/credit-cards/search-by-lender/">Preferred Institution</a></li> <li><a href="/credit-cards/star-ratings/">CANSTAR CANNEX star rating</a></li> </ul> </div>  </div>   <div id="footer"> <div id="footer01left"><table width="100%" border="0" cellpadding="0" cellspacing="1"><tr><td nowrap="nowrap"><a href="/about-ratecity/" target="_blank" class="mainlevel" >About RateCity</a><span class="mainlevel"> | </span><a href="/advertise-on-ratecity/" target="_blank" class="mainlevel" >Advertise</a><span class="mainlevel"> | </span><a href="/privacy-policy/" target="_blank" class="mainlevel" >Privacy Policy</a><span class="mainlevel"> | </span><a href="/star-ratings/" target="_blank" class="mainlevel" >Star Ratings</a><span class="mainlevel"> | </span><a href="/terms-of-use/" target="_blank" class="mainlevel" >Terms of Use</a><span class="mainlevel"> | </span><a href="/contact-us/" class="mainlevel" >Contact Us</a><span class="mainlevel"> | </span><a href="/sitemap/" class="mainlevel" >Sitemap</a><span class="mainlevel"> | </span><a href="/jargonbuster/" target="_blank" class="mainlevel" >JargonBuster</a><span class="mainlevel"> | </span><a href="/disclaimer/" target="_blank" class="mainlevel" >Disclaimer</a><span class="mainlevel"> | </span><a href="/images/pdf/ratecity_fsg.pdf" target="_blank" class="mainlevel" >FSG</a></td></tr></table></div> <div id="footer01right">© 2007-2009 RateCity</div> <div id="footer02"><table width="100%" border="0" cellpadding="0" cellspacing="1"><tr><td><a href="/index-A.html" class="mainlevel" >A-Z</a> | <a href="/car-insurance-index-A.html" class="mainlevel" >Car Insurance</a> | <a href="/credit-cards-index-A.html" class="mainlevel" >Credit Cards</a> | <a href="/home-loans-index-A.html" class="mainlevel" >Home Loans</a> | <a href="/personal-loans-index-A.html" class="mainlevel" >Personal Loans</a> | <a href="/car-loans-index-A.html" class="mainlevel" >Car Loans</a> | <a href="/savings-accounts-index-A.html" class="mainlevel" >Savings Accounts</a> | <a href="/term-deposits-index-A.html" class="mainlevel" >Term Deposits</a> | <a href="/useful-links/" class="mainlevel" >Useful Links</a> | <a href="/partners/" class="mainlevel" >Partners</a> | </td><td style="color: white">ABN 12122743542 </td><td style="color: white">AFSL 316710 </td></tr></table></div> </div>  </div> </div>  <div class="ninemsn_wrapper">  <div id="nmsnft">  <script type="text/javascript" language="JavaScript"></script> <div id="msnft_div"> <script type="text/javascript" language="JavaScript"></script> </div> <div id="msnft_div1" style="visibility:hidden"> <script type="text/javascript" language="JavaScript"></script> </div> <div id="msnft_div2" style="visibility:hidden"> <script type="text/javascript" language="JavaScript"></script> </div> <div id="msnft_div3" style="visibility:hidden"> <script type="text/javascript" language="JavaScript"></script> </div> <div id="msnft_div4" style="visibility:hidden"> <script type="text/javascript" language="JavaScript"></script> </div> <div id="msnft_div5" style="visibility:hidden"> <script type="text/javascript" language="JavaScript"></script> </div> <div id="msnft_div6" style="visibility:hidden"> <script type="text/javascript" language="JavaScript"></script> </div> <div id="msnft_div7" style="visibility:hidden"> <script type="text/javascript" language="JavaScript"></script> </div> <div id="msnft_div8" style="visibility:hidden"> <script type="text/javascript" language="JavaScript"></script> </div> <div id="msnft_div9" style="visibility:hidden"> <script type="text/javascript" language="JavaScript"></script> </div> <div id="msnft_div10" style="visibility:hidden"> <script type="text/javascript" language="JavaScript"></script> </div>   <noscript> </noscript>  </div>  </div>  <script type="text/javascript"> var gaJsHost = (("https:" == document.location.protocol) ? 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Caught in the credit card spin cycle?