Balance Transfers

A Balance transfer is often necessary when you are changing your credit card provider or are transferring a debt. A lot of providers will generally treat balance transfers the same way as they do a cash advance so in that sense you are charged the maximum rate of interest from the moment that the transaction takes place. This can make engaging in a balance transfer a risky endeavour unless you are in a position to pay off the debt in a short period of time.

Many of the providers attempt to make the idea of balance transfers more appealing by often offering a low interest rate on the transfer. But this can often just be used a tactic or incentive to make you apply for their cards. However if you can pay off the debt in a period of 6 to 12 months a credit card balance transfer can be a very cost effective exercise as long as you are realistic. Being informed of which providers are offering low interest on balance transfers can be advantageous to your cause and help you spend as little money on interest payments as possible.

The low balance transfer credit cards can be a good way of consolidating existing debts or taking control of those gaining high interest. Some Australian banks offer long-term rates as low as 8.99%, saving you a considerable sum on the standard rates. Although you generally miss out on introductory rates with a dedicated low balance transfer credit card, the interest rate is considerably lower than the majority of credit cards.