Balance Transfer Credit Card deals offer easier post-Christmas debt management

A review of balance transfer credit card deals highlights the number of banks offering consumers interest-free debt for up to 12 months.

 

A review of balance transfer credit cards by MoneyHub highlights the potential for New Zealand families to save hundreds if not thousands of dollars on credit card fees and interest if used intelligently. Three banks were committed to offering 0% interest, with Wesptac and BNZ leading the field when it came to the length of the interest-free period. As New Zealanders hit record EFTPOS spending in late 2017, debt balances are now hanging around and balance transfer credit cards present an attractive way to manage repayments.

 

MoneyHub’s Senior Researcher, Christopher Walsh said:

“Westpac, BNZ and ASB all offer interest-free credit cards for up to 12 months, with market-beating interest rates for balances after the interest free period ends. The deals make credit card debt repayment much easier, and avoid 20%+ per annum interest rates on runaway debt”.

“With Christmas-related debt still likely to be hanging around, a simple balance transfer of credit card debt can relieve pressure on personal finances in the short term and for the rest of 2018”.

“Best of all, Westpac and BNZ offer terms of up to 12 months with 0% interest and very low card fees. The prerequisite is you can’t be an existing customer of the bank offering an interest-free balance transfer deal”.

“Banks offering credit card transfers don’t discriminate on how the existing credit card debt was incurred, and this extended to debt from cash advances as well. The most important factor was making sure applicants were in a good financial position”.

“MoneyHub believes balance transfer credit cards are an attractive way to manage debt if individuals cancel their existing card after the balance transferred to a new bank – running up new debt would be a fast way to money troubles later on”.

 

MoneyHub published a number of different balance transfer credit card options, as well as a number of tips to make a 0% offer the most cost-effective. The dedicated page will be updated on an ongoing basis as deals change and new information becomes available.