The act of using a low rate balance transfer card is one of careful budgeting and a general understanding how these cards work. Learn how to make the most of these deals and pay off your credit card debt in record time.
Australian balance transfer cards can be had for dozens of varieties; there is the 0% p.a. card, the low rate balance transfer card and of course the for life balance transfer credit card.
What is the deal with low rate balance transfer cards?
That depends how you look at the deal offered by your lender. For starters, not every low rate transfer card is equal, some come with a longer promotional period than others, some offer additional deals such as cashback or rewards.
What most of these cards do have in common is the standard 2.99% p.a. to 5.99% p.a. interest rates on your balances.
Helpful tips to make the most of your balance transfer card:
Any financial advisor would stress the following point to you above all others:
- Never use any balance transfer card for purchases!
The idea of using this type of card is not to keep indulging into your shopping fantasies just because the interest rate is lower. Doing so will guarantee to get you into more trouble than ever before.
Balance transfer cards are thought to be used to repay credit card debt faster than usual with the help of low rates on the transferred balances.
For example, if you were to transfer $10,000 debt from your old credit card to a new balance transfer card you would be paying the applicable interest rate on that debt once the money has been officially transferred by your new lender. So instead of paying 15%+ on your debt you might only pay 2.99% p.a.
As you can see, a huge difference resulting in hundreds of dollars of savings.
Key usage tips for balance transfer credit cards:
The first thing you want to do is to budget your outgoing finances. Keep an eye on your wasted spending, money that seems to disappear into nothing. Often you find it is the small cash expenditure that ends up being the biggest loss in your wallet.
As already mentioned, do not buy ANYTHING with your new card. Instead, try to learn to minimise your impulse spending and use cash only. If there is no cash – there is no purchase. It’s the single biggest favour you can do for yourself.
Plus you’ll pay off your debt in no time.
The next thing you want to do is to pay off the full balance each month. If you can, pay off more as this will further reduce your debt. Perhaps you could consider taking on a second job to earn some extra money for the time being. Use that money to pay off your credit card debt even faster.
With these tips you should be able to handle your new low rate balance transfer card like a true trooper.
Related posts:
- How To Use Low Rate Balance Transfer Credit Cards
- What To Look For In A Low Rate Balance Transfer Credit Card
- Low Interest Rate Balance Transfer Credit Cards And How They Work
- How To Compare Low Rate Balance Transfer Offers
- Low Rate Balance Transfer Credit Cards And What To Pay Attention To
- How Low Interest Rate Balance Transfer Cards Work
- A Good Low Balance Transfer Credit Card
- Comparing Low Rate Balance Transfer Offers
- Beating the Interest Rates Affecting Credit Cards
Posted on Tuesday, April 6th, 2010 at 1:04 pm
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