Zero interest balance transfers have traps

There are tricks and traps that can make the zero rate offers very expensive. If you miss a monthly minimum repayment on some cards, the zero interest deal is off and the whole balance begins to be charged at a higher interest rate.

What is also not highlighted in is the fact that there is often no interest free period on new purchases while part of the transferred balance remains unpaid. A lot of credit card marketing is "psychologically manipulative” according to research by Dr Paul Harrison from Deakin University. To counter that requires careful research through a good financial comparison site such as Infochoice to ensure you are signing up to the card that is best suited to your needs.

Source: Courier Mail

Advertisement