Credit card interest really adds up fast. If you have a lot of credit card debt, or even if you tend to carry a balance from month to month, finding a card with a low rate of interest is key to saving you the most money possible.The best way to make sure you are not getting ripped off and throwing your money away is to check your interest rate to make sure it does not go up. If it has gone up, it is important to be as diligent as possible so you can minimise the amount of money you waste.
 |
||
| ANZ Low Rate Purchases : 0% for 3mths (Offer ends 12.06.12) then 13.39% p.a. Balance Transfer: 0% for 3mths Annual Fee: $58 Interest Free Days: Up to 55 Cash Advance : 21.49% p.a. More Info |
||
| ANZ Low Rate Apply Now |
Many Australian banks are currently raising their credit card interest rates, mostly to match the increase in the Reserve Bank interest rates. These interest rate increases are on par with the rest of the economy, but nonetheless make your credit card spending more expensive, especially for people who are struggling to meet their minimum payments.
If you are having trouble paying your credit card debt down due to high credit card interest rates, getting the lowest rate possible is absolutely key.
For those who do not pay much attention to their credit card debt, a small increase in the credit card interest rate can mean a big change in how long it will take to pay off your balance as well as how much money you throw away in interest payments.
Even low interest rate credit cards have a high rate of interest when compared to the reserve bank rate. The average low rate credit card has an interest rate over 9% higher than the Australian Reserve Bank interest rate.
If you have a simple no fee credit card, you will probably be hit the hardest in terms of interest rate increases. These cards have to make their money somewhere, which they do by charging an overly high interest rate. So if you have one of these no frills cards, it is extremely important to keep your balance low or pay your card off completely from month to month.
So how do you tell when you are paying too much money in interest payments? Pretty much all credit card users who carry a monthly balance are throwing a great deal of their money away. But the recent increases are exacerbating the waste of money. Recent studies have shown that consumers with $3,000 of debt are now paying several hundred dollars more in interest payments.
