Expensive News Ahead For Aussie Credit Card Users
Some of Australia's biggest banks are taking back some of their enticing interest-free credit card deals as Aussie customers get savvier at keeping on top of their debt. Some banks are targeting Bank Balance Transfers in particular.
A balance transfer is when you request an amount owing on a personal Australian-bank issued credit card to be transferred to another bank's credit card. Often the balance transfer deals allow customers to wipe debt faster because they have rewarding and lengthy interest-free periods.
It's the savvy way to pay off credit card debt and avoid being set back by nasty interest fees.
Financial guru Kristy Lamont told The Daily Telegraph, “As cardholders become savvier at using balance transfer tools to reduce their debt levels and avoid high interest charges, the banks either need to find new ways to make these offers profitable or reduce the generosity of these offers.”
This month NAB replaced its zero per cent 15 month balance-transfer deal a less attractive offer of 4.00 per cent interest charge for six months on a number of its cards.
ANZ have also shortened its zero percent interest-free balance-transfer deal on some cards from 18 to 16 months. This means customers have less time to pay off their debt without accruing interest.
In The Daily Telegraph Kristy Lamont urged customers 'to hunt around for better options as there remained big discrepancies on the offers available.'
Don't get caught out!
Source: Daily Telegraph