Zero interest balance transfer can work

Data from the Reserve Bank analysed by banking research company Infochoice, indicates that consumers with a card debt of $10,000 can save up to $4,300 by using the balance transfer offers now in the marketplace. But beware, most people who use these kind of offers end up paying more in the long run because they get caught out by the terms and conditions that are not highlighted in the glossy marketing material.

For example, if the transferred balance is not fully paid off within the promotional ‘honeymoon’ period the new credit card will often bump the rate charged up to the cash advance rate, not the headline purchase rate. That means you could be paying around 20 per cent on your debt. Three of the four big banks are doing this to their credit card customers they have lured from competitors with their ‘zero rate’ offers.

Source: Courier Mail