Newspaper article Tweed Daily News (Tweed Heads, Australia)

Switch to Low-Interest Credit Card

Newspaper article Tweed Daily News (Tweed Heads, Australia)

Switch to Low-Interest Credit Card

Article excerpt

MAKING MONEY

Paul Clitheroe

DESPITE a string of cuts to the official cash rate over the past year, there's a good chance the interest rate on your credit card hasn't budged in the past 12 months.

Since last November the Reserve Bank of Australia has dropped the official cash rate by 1.5%. Yet according to comparison site RateCity most credit card rates have remained unchanged.

Only around one in four personal credit cards has cut its rate in the past year, with the average reduction being a miserly 0.44%.

That's seeing credit card interest rates average 17.26% at present a 14% more than the RBA cash rate. It's a gap RateCity says is the biggest it's ever recorded.

Put simply, it means we're paying through the nose for many credit cards; a serious drain on your finances.

As a guide, on a card debt of say, $3000, you could be paying annual interest charges of $520.

Switching to a cheaper card is a simple way to trim the cost. …

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