Save Interest On Your Credit Cards

Save Interest On Your Credit Cards

If you went overboard during the holiday season here is a way you can easily save some cash with your Credit Cards…

We all know how it can get in the run up to Christmas. Presents, parties, and the inevitable move to pull out the plastic. Did your credit card take a hammering over Christmas? If so, or you just want to save some cash, you can do so quite easily. You can save yourself from paying up to $1,000 in interest in just six months.

How is this possible? Well that credit card balance isn’t going to disappear automatically but you can reduce the interest you are paying considerably, up to 14%. This is thanks to increasing competition amongst the major financial players. They are hungry for your credit card debt and the profits that come with it.

When you transfer the balance from another bank they will say thank you by giving you a discounted interest rate on your credit card debt. This is usually for a specified six month time period. Westpac has the best offer in the market offering 4.99% for the first six months with no card fee. So if you can pay off your credit card in 6months this is perfect! If it takes you a year you are still saving a fair bit though as after six months you will pay 12.65%! The table below shows the interest savings you can make assuming you STOP using that card and pay of the minimum each month.If you can pay off your credit card in 6 months then the BNZ lite is the best option. The interest rate is even cheaper than a mortgage at 5.99% for 6 months. If it will take 12 months or more to pay off your credit card then the Westpac Low Interest MasterCard is the best option. With this card you get the 8.75% interest rate until the transferred balance is paid off.

There is a bit of work required. You can apply for both these online but at some stage you will need to be identified at the bank. So you are looking at about an hour all up. The only other hurdle may be having a good enough income level to keep the bank happy.

Both these options will work out CHEAPER than most debt consolidation or personal loans on the market. This really is the best way to clear credit card debt. On the proviso that you put that credit card on ice for a while and don’t spend any more on it! While that card is cooling off, why not make your life a whole lot easier and go about clearing the whole balance at the same time. If you can keep it under control, you pay no interest. Just the way it should be, less cash on interest and more cash for you.

ENDS

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