Many people assume that credit cards are the root of all debt evil. This is actually not the case. The main reason people have trouble with their credit cards is simply because they are having issues with debt control in general.

Credit cards can actually be your answer to debt management control. With debt consolidation credit cards, which are specifically made for those who have spiraled out of financial control, you can consolidate your debt into one easy monthly payment, reduce the stress and the bills, stop credit card penalties and interest from piling up and finally gain control of your financial future.

Things to Look For in Consolidation Credit Cards:

There are three things that credit cards designed for debt management should have:

• A low to balance transfer interest rate.  Many credit cards will not charge interest to consolidate your debt and transfer your other credit card debts into one credit card account.
• Long balance transfer period: at least for first six months to a year which will give you time to get your finances in control.
• Low annual fee: a lower credit card usage fee will also help get your credit card debt under control sooner.

Your Top Three Credit Card Choices:

Most Australian financial institutes offer a consolidation or credit card debt management option.  Below are three of the best interest rate and balance transfers:

• St George’s Vertigo MasterCard
  0% interest balance transfers for first six months; 10.99% annual interest, $55 annual fee
• Citibank Clear Platinum Card
  0% interest balance transfers for first six months; 10.99% annual interest, $85 annual fee
• AMZ Low Rate MasterCard
  0% interest balance transfers for first six months; 11.74.% annual interest, $55 annual fee

Australian credit cards are governed under Australian laws which regulate credit card use and lending practices to protect consumers. Credit cards have become important payment method and Australia has a few regulating body’s that include credit cards in there agenda.

• Australian Prudential Regulation Authority (APRA)
  http://www.apra.gov.au
• Australian Securities & Investments Commission(ASIC)
  http://www.asic.gov.au
• Australian Competition and Consumer Commission (ACCC)
  http://www.accc.gov.au
• The Reserve Bank of Australia (RBA)

  http://www.rba.gov.au

The Australian Prudential Regulation Authority (APRA) oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry.

ASIC is Australia’s corporate, markets and financial services regulator.
ASIC contributes to Australia’s economic reputation and well being by ensuring that Australia’s financial markets are fair and transparent, supported by confident and informed investors and consumers.

ASIC is an independent Commonwealth Government body set up under and administer the Australian Securities and Investments Commission Act (ASIC Act), and we carry out most of our work under the Corporations Act.

The Australian Competition and Consumer Commission (ACCC) is an independent body which promotes competition and regulates Australian credit card lenders. The ACCC’s primary responsibility is to ensure that individuals and businesses comply with the Commonwealth’s competition, fair trading and consumer protection laws through the Trade Practices Act. The ACCC educates the Australian public on many matters including credit cards. The ACCC can help in dispute resolutions or take legal action if required.

The Reserve Bank of Australia. As well as being a policy-making body, the Reserve Bank of Australia (RBA) provides selected banking and registry services to a range of Federal Government agencies and to a number of overseas central banks and official institutions..

When you use a credit card, a lender loans you money until you repay the amount back. During this time when you borrow money, you will be charged interest on the total amount you borrowed after any initial interest free periods.

This is when you pay credit card interest, the amount of interest charged varies between lenders based on the credit cards interest rate. A lower interest rate is a better option when you leave a balance on your credit card continuously.

They’re generally two types of credit card interest rates, purchase rate and cash advance rate.

Purchase rate is charged when you buy anything on a credit card, like when you use your credit card in the shops or online.

Cash advance rate is charged when you draw cash directly from your credit card. Cash advances usually have a higher interest rate and are not recommended for most credit cards, you need to check your credit cards cash advance rate if you need to use it. Also note the terms of cash advances, they usually stop any interest free periods until you repay your card in full.  Something to watch out for!

The Interest rate charged is calculated using a compound interest formula. What compound interest does is add interest to the principle daily. Every day your balance owing grows because of this interest added. If you repay more than minimum repayments, then you can greatly reduce the compound interest effect on your debt.

If you don’t want to be paying too much Interest for using a credit card, it makes sense to use a low interest rate credit card when you know you’ll be paying interest. Compare low interest credit cards for Australian’s online before you make and application, you can choose a credit card with the least interest and save heaps of money in the long run.

credit card interest calculator

Credit Card Interest Calculator

Do you know how much interest you are paying on your current credit card balance? To find out, use our  credit card interest calculator to see what compound interest you are being charged daily, weekly, monthly and yearly with the money you owe.