Balance Transfer Cards Becoming More Popular In Australia

As household debt increases, so do the number of credit card applications for balance transfer cards. Find out more about the trend in this article.

Credit card applications have risen significantly since the 2009 March quarter due to an increase in household debt amongst Australians. After Christmas, the first quarter can be very difficult for people and families. Many regret having spent so much at this time of year and look for better interest rates on their cards.

Household debt on the increase

With more household debt, there has been an increase in expenditure, limits and applications for credit cards. Some interesting statistics about these increases are listed below. These categories show where the increases are the highest.

• People making a high income.
• Mostly men.
• People with families.
• More people that live in Victoria.
• People working full time
• People working full time.

In January 2010, D&B reported that full-time workers and people with children believe that their level of debt will rise. Both of these groups compromise 24% of the Australian population. Here are more interesting statistics to read about.

• There will most certainly be an increase in the amount of 18 to 34-year-old people that will use their credit to pay for expenses and will apply for an increase in their credit limit.
• During the March quarter, 37% of Australian households plan on making a major purchase, while 45% of them said they’d pay for their purchase using a credit card.
• 43% of the people in the category 18 to 34-year-olds will make an application for new credit.
• In the March quarter, 30% of the households in Victoria are expected to make a new credit application. Australians in Victoria are also expected to make more applications for an increase in the their credit limit.
• Victorians are expected to purchase unaffordable expenses the in the March quarter.

Balance transfer credit cards

Consumers are looking for deals on balance transfer credit cards that offer a low interest rate. These balance transfer cards can either ask for an ongoing low rate of interest or have an introductory time period for the interest rate. It can be quite difficult to pay off a household debt that was built up at Christmas, and balance transfer cards offer some form of relief. Having a balance on a credit card with a 20% rate of interest can take a long time to pay off since a lot of the payment is going towards paying off interest alone.

Some balance transfer cards come with a 0% rate of interest for a promotional period of six months, while other cards offer a very low rate of interest for longer. Some cards have a low interest rate for as long as the balance remains on the card.

Consumers are looking for easier ways to get their debts repaid and there will continue to be a rise in the popularity of these cards in the foreseeable future.

Household debt has been increasing and with it there have been rises in credit card usage and applications. More and more people are turning to their credit card, and balance transfer credit cards have become a common solution to clearing household debt.

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Posted on Thursday, June 3rd, 2010 at 4:36 pm