With household debt rising and now exceeding $250 billion, MoneyHub’s review of low interest credit cards and balance transffer deals identifies opportunities for indebted New Zealanders to break free of crippling interest rates and increase their financial resilience.
Senior Researcher Christopher Walsh comments:
“Low interest credit cards are becoming increasingly popular as New Zealanders forgo cashback and flight rewards and opt for wallet-friendly interest rates. Our guide to low interest credit cards has demonstrated a competitive market, sometimes with a sticker rate of almost half what standard credit cards charge”.
“Balance transfer credit card deals are offered by banks year-round, and the best offers include 0% for 12 months. Most people with regular employment and a history of non-default on credit cards would realistically meet the criteria to successfully apply for a low interest credit card or balance transfer”.
“While we certainly don’t encourage the irresponsible use of credit cards, anyone struggling to meet their immediate financial needs and seeking high interest loans or payday lending could sensibly consider an appropriate low interest or balance transfer credit card. Every day the financial resilience of New Zealanders is challenged by high-interest lending often has painful long-term effects”.
“Our guides to Low Interest Credit Cards and Balance Transfer Credit Cards are both accessed by thousands of MoneyHub users every month. We want to encourage anyone with a growing personal debt balance to consider a balance transfer. With 0% interest rates for up to 12 months and low-rates until the balance is cleared, those with a $5,000 debt could save thousands of dollars in interest fees by applying”.
“Improving the financial resilience and awareness of everyday New Zealanders is at the heart of everything MoneyHub does. We believe that debt as a concept isn’t bad, but the wrong type of debt can be financially devastating. Financial education plays a major role in making the right choice”.
“With a growing number of New Zealanders experiencing some form of financial stress, we applaud the Commission for Financial Capability for identifying the growing need for Financial Resilience and dedicating the upcoming Money Week 2018 to this issue”.