How to manage your overdrawn credit card and consolidate your debt with a balance transfer.
If you’re one of the many Australians with an overdrawn credit card, you shouldn’t feel alone. If you’re looking to take control of your expenses, transferring the debt from your overdrawn credit card to a balance transfer card can be a smart way to consolidate your debt with low or sometimes even no interest. Read on to discover how different types of balance transfer credit cards can help you become free from debt.
ANZ Credit Card Offer
Feel restored with an ANZ Low Rate. It gives you a chance to have a new beginning when you consolidate your credit card payments with its low rate balance transfer offer. It also comes with a low annual fee and low interest rate. Get a response on your application within 60 seconds online.
- $58 p.a. annual fee
- 13.49% p.a. on purchases
- 0% p.a. for 18 months with 3% balance transfer fee on balance transfers
- Cash Advance Rate of 21.74% p.a.
- Up to 55 days interest free
- Minimum Income Requirement of $15,000 p.a.
Short-term balance transfer cards
When you are looking at a solution for paying off your overdrawn credit card, you will see deals and promotions that last only for a short term, such as six months or less. These offers are worth considering if you don’t have a very high balance to pay off. Consider how much you owe, the promotional interest rate in place and the length of the offer to determine whether you can repay your entire balance by the time the promotion ends. If so, a short-term balance transfer card might be all you need.
Long-term balance transfer cards
If you have a high debt or don’t have the means to pay off your balance within six or so months, you might want to consider a long-term balance transfer credit card. You can get balance transfer cards that last between 12 to 24 months. Calculate how much you owe and the details of the promotion to determine how long it will take you to repay your debt.
What if I can’t repay my balance by the end of the promotion?
There’s no such thing as the one right balance transfer credit card, and the most valuable one will depend on your debt and ability to repay. Before you apply, calculate how long it will take for you to repay your debt to determine what balance transfer offer you’ll need. Even if you think you can repay your balance before the promotion ends, you should confirm what the balance transfer will revert to at the end of the promotion. This is generally the much higher cash advance or standard interest rate, so it’s important to either pay your debt off or understand how much you’ll start collecting in interest if you’re unable to repay it by the end of the promotion. If you stick to a budget and repayment schedule early on, you can keep your finances in line and successfully consolidate your debt.
Balance transfers can be a great way to consolidate your overdrawn credit card debt, but there are some factors you’ll need to consider and compare before applying to find the right card for you. Whether you’re using a short-term or long-term balance transfer, do your best to stick to a budget and make regular repayments to take control of your debt.