Balance transfer is an option that you get when you apply for some new credit cards. The main reason to use a balance transfer is to easily change credit cards, moving what you owe from one credit card to the next.

The promotional period (balance transfer) is a sweetener to get you to move your credit card. You can use balance transfers to your benefit if you budget and plan to repay your balance during this intro period. You can save money and reduce financial stress with a balance transfer plan.

Interest on your credit card does increase the amount of time it will take for you to repay the principle loan. You can get 6 months or more interest free, how far can you go in repaying your credit card during this time?

Balance Transfer Steps:

1. Find a credit card with a lower interest rate, lower fees and a generous balance transfer period.
2. Apply for that credit card, fill out all the required information and other credit cards balances you want to transfer in the application and prepare to cancel the first credit cards.
3. Once you get the new credit card begin following your repayment budget plan. This is the time to increase your credit card repayments if possible. Remember to cancel your old credit card to avoid the fees and the temptation to use it again.

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  Virgin Flyer Credit Card
  You’ll earn 1 Velocity Point per $1 spent up to $1,500 per month and then 1 Velocity Point for every $2 spent.
  20.99% interest – $99.00 per annum – 0.00% for 6 months balance transfer

• 

  HSBC Platinum Qantas Credit Card
  + 20,000 bonus points
  20.99% interest – $199.00 per annum – 0.00% for 6 months balance transfer

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  StGeorge Vertigo MasterCard
  2.99% p.a. balance transfer rate for up to 6 months!
  13.24% interest – $55.00 per annum – 2.99% for 6 months balance transfer

December credit card repayments increased on the back of the Australian governments first 10.4 billion stimulus package. The Reserve Bank of Australia has presented figures which showed a 22 percent increase in the amount of money spent on credit card repayments in the month.

The Australian Government first stimulus package was designed to strengthen the Australian economy by giving cash handouts to low and middle income earners in early December 2008. As suspected some people would use the cash to repay debts and a lot of Australians replayed their credit card debts with their handout.

“about a billion dollars has gone onto credit cards in the past month or two.”
(ABC, 2009, December credit card repayments at 3-year high)

Consumers have continued to make purchases with their credit cards during the Christmas period so the planned impact of the stimulus package has shown signs of its effectiveness in increasing retail trade figures in the December period when credit card spending rose by 20 %.

All this shows is that people are more aware of their credit cards debts and are trying to decrease there debts to reduce or even eliminate interest charges with the ultimate goal of saving money.

Consumers can save even more money on interest repayments if they reduce the interest rate of their credit cards. If you have a credit card with an interest rate above 15% you could save hundreds of dollars every year just by transferring your credit card balance to a low interest rate credit card.

How did this happen, I started with one credit card many years ago and today I have more that I care for. Lifestyle choices in the past could have lead some of you into acquiring a second or third credit card, but situations change and having more that one credit card can lead to financial stress.

You can consolidate your credit cards into one credit card if you need to. The benefits for doing so can be well worth the effort.

Just one credit card statements to check and manage, having more than one credit card statement can be hard to handle for the unorganized.

One repayment goal for you to focus on, if you have more than one credit card you might find it harder to manage with different and varying totals to deal with.

One annual fee, you do pay for the privilege to have a credit card, save some money by cutting one or more annual fees and the difference will ad up over time. Really!

Reduce annual fees, lower interest rates on purchases or get better features in other areas like rewards or flying points. When consolidating your credit cards you could save and gain more benefits when you think what type of credit card suits your circumstances.

When consolidating your credit debts you use a balance transfer feature to transfer the balance funds from the multiple cards to the one.

This is where you can really save on interest because most credit cards offer fantastic introductory rates. You can pay no interest for 6 months or more, the interest saved could really help you finish repayments sooner.

Is credit card consolidation right for you? “Balance transfer credit cards” lists the top balance transfers available for you to consider. Apply Here