If you spent a little too much over the silly season and are expecting a big credit card bill in the mail come February, then it’s may be time to lock in a low rate balance transfer deal to get on top of your debt.
Using a balance transfer deal is a proactive way of taking control of your debt by reducing the interest you will have to pay on the amount owing.
This gives you a relatively stress-free period of 0 per cent interest to try and get rid of your owing balance. Compared to having interest charges pile on at the average of around 17 per cent, a 0 per cent balance transfer can be a much more attractive option.
At the end of 2016 there were 133 0 per cent deals on the balance transfer market with some of those extending the amount of interest free months to 24.
Only a small proportion of these cards charged a balance transfer fee so moving your cash over shouldn’t cost a penny if you find the right card.
To find the right card that’s customised for your circumstances you can use RateCity’s balance transfer calculator. It will calculate, based on your debt amount and the amount you can repay each month, which deal is the most appropriate for you.
Here are some of the best deals on the market right now based on what would cost the least to repay a balance of $5000 making repayments of $400 a month. It also assumes that repayments are made on time and there are no extra charges put on the card during the payment period.
This card offers a 0 per cent for 12 months deal and then reverts to a rate of 8.99 per cent. There are no fees charged and the debt would take 13 months to pay off.
Total cost: $5001
This card offers a 0 per cent for 12 months deal and then reverts to a rate of 11.8 per cent. There are no fees charged and the debt would take 13 months to pay off.
Total cost: $5002
This card offers a 0 per cent for 16 months deal and then reverts to a rate of 19.84 per cent. There is a $30 annual fee that is waived in the first year and the debt would take 13 months to pay off.
Total cost: $5030