Australian Capital Territory 0% Balance Transfer Credit Cards

Zero Balance Transfer Credit Cards

When it comes to credit card debt, one of the biggest issues that many Australians face is the massive interest rates that make paying it off so difficult to accomplish. When you consider that making the minimum payment will take several years to pay off most debt on a credit card, it is little wonder that switching the debt load to another card with a lower interest rate has become a very option.

This is especially true for 0% balance credit cards which many companies are marketing to attract those who have racked up high credit card debt.

What is a 0% Balance Transfer Credit Card?

This is generally an introductory rate provided by a credit card company that encourages you to switch your debt load over from your old credit cards. By offering 0%, you can potentially save hundreds of dollars when it comes to paying off your debt. However, the 0% will generally last three to six months and then a far more substantial interest rate will then kick in.

In addition, whatever the standard rate that will start up in three to six months on the debt that you have transferred will apply to any new purchases that you make on the card. So, in using the 0% interest rate, a person will only have a limited amount of time to take full advantage in knocking down their overall debt.

The Benefits of Zero Balance Transfer

There is essentially one big advantage in transferring your old debt to a zero interest rate credit card. However, that advantage will have to be weighed against the potential issues that such cards will bring depending on the standard interest rate that will kick in.  Naturally, you will want to choose a card that has a reasonable standard rate as one that offers 17 to 19% will simply put you back in the same situation as before.

To take advantage of the benefits, you’ll need to be ready to pay down as much of your debt as possible as long as the 0% rate is in effect. Given that many credit card companies offers this type of introductory rate for transferring the debt balance, you can wait until you are financially ready to start paying down large chunks of your debt when switching to the new card.

You will need to transfer your debt immediately to take advantage of the transfer, so be sure to read all the details on the card before making your decision.

A good tip is to transfer your new balance immediately, but still use your old car for new purchases until the balance transfer time has been completed. At that point, you can fully switch over to your new card and start purchasing items if you so desire.

The 0% balance transfer credit card can save you a considerable amount of money when it comes to paying off your debt. Just be sure to get one that has a reasonable standard rate so that you will not rack up as much debt in the future.