CANNEX releases credit card star ratings report
26 November 2007
FOR IMMEDIATE RELEASE
Cut your interest in half
CANNEX releases credit card star ratings report today.
Shoppers are predicted to swipe close to a record $2.6 billion on their plastic in the lead-up to Christmas. Even so, this festive season shopping spree is not expected to have a significant impact on the country’s personal debt figures which have remained at a steady $4.5 billion all year.
Kiwi credit card users have also kept their personal credit card debt at around $3 billion, according to a new report released by financial research services firm CANNEX.
“This might suggest that Kiwis are concerned about keeping their credit card debt on a short leash” said CANNEX analyst Garfield Wright.
While growth of credit card debt has practically stalled this year, high interest rates mean that a significant portion of repayments are being swallowed by interest costs.
Over 75 different credit cards are on offer across New Zealand with interest rates ranging from 11.95% to 20.99%. Only eight of these cards charge less than 14% interest on outstanding debts.
The rates are even lower if you are prepared to switch credit cards and transfer your balance from your old card. Balance transfer rates range from 4.99% to 9.99% and last for either 6 months or for the life of the balance.
“A balance transfer could effectively cut your interest charges in half so that more of your credit card payments are applied to your debt,” Mr Wright said.
“At the current average interest rate of 19.61%, card-holders are paying just under an estimated $50 million in interest charges per month.
“If you think you are paying too much interest you may need to look around for a better card.”
The CANNEX credit card star ratings, released today, help the consumer short list products by highlighting five star credit cards for the four spender types – Everyday Spender, Big Spender, Habitual Spender and Impulse Spender. Consumers can download this report on www.cannex.co.nz