Make low-interest-rate cards work for you

If you're a “revolver”, a card user who doesn't pay off your card in full each month and has debt revolving from one month to the next, increasing competition is working in your favour. A host of new low-rate cards are on the market which have interest rates up to 9 percentage points lower than the high interest rate cards charging 16 to 18 per cent. There are also many balance transfer offers around that give you even lower rates of 5 per cent for the first six months or so on balances you transfer from another card. You could save $200 in interest in the first year alone on a $2000 revolving card balance by taking advantage lower interest rates.

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