Your Money Magazine recently appeared on Channel 7’s Today Tonight program to talk about the best credit card for your situation.
Australia’s credit debt stood at a record $49.4 billion in May 2011 according to the RBA. With the average credit card holder currently paying in excess of $2,400 in interest each year often at rates of 19-20 per cent, switching to a low-rate card could save you hundreds of dollars a year and help clear your debt faster.
Your Money Magazine compared 17 of the best low-rate credit cards available nationwide to pick the winners based on a detailed analysis of the interest rate, annual fees and the number of interest-free days offered on each card.
While many cards offer enticing rewards and great introductory offers, often these come with higher interest rates and other traps that end up costing the customer a lot more. Your Money Magazine managing editor Jackie Pearson warned customers not to get side-tracked by special offers and focus on how much you will be paying in interest and fees.
“Frequent flyer points, platinum cards and introductory rates may sound appealing, but if you have an outstanding balance, your best option is to choose a no-frills credit card with a low ongoing interest rate,” said Pearson. “Many people stay with the same card provider for years to avoid the hassle of switching, but you could be finding a better deal elsewhere so it’s important to shop around.”
Your Money Magazine’s tips to cut credit card debt include:
- Choose the card that will cost you the least amount in interest repayments and fees
- Avoid making new purchases on the card
- Pay off as much as possible each month
For more information on the winning credit cards, and helpful tips on how to manage your finances, pick up the latest issue of Your Money Magazine. On sale at leading newsagents or subscribe online here.