Nicole Heales

  • Why Nicole?
  • How I help you
    • Take Control
    • Insurance
    • Superannuation
    • Debt Reduction and Mortgages
    • Wealth Creation
    • Retirement
  • Success stories
  • Education
    • Podcasts
    • Ebooks
    • Explainer Videos
  • News
  • Contact

Enjoy a credit card holiday

To help reduce credit card balances, many people turn to balance transfer credit cards.

While these cards can help you reduce your debt, they do catch people out from time to time.

In this article, we’ll flag some common pitfalls and discuss the right way to use these cards.

The pitfalls

First things first: let’s discuss some of the ways that you can ensure a balance transfer credit card doesn’t cost you money. They are a product, after all.

1. Try not use the card until you’ve paid it off

It’s important to note this isn’t your new personal spending account! In fact, try not to use it at all. That’s because the card promotion most likely only relates to the balance transfer and any new purchases will come attached with a high-interest rate.

2. Don’t set and forget

Many balance transfer credit cards have a promotional period. But once that’s up high-interest rates can kick in. So make sure you don’t think the job is done once you’ve transferred the balance, be proactive in paying it off!

3. Read (and understand!) the Terms and Conditions

It’s important to double check a number of details in the fine print, including the interest rate after the promotion, hidden fees and charges, and when the balance transfer start date officially begins so you can pinpoint the exact promotion end date.

Using balance transfer credit cards to your advantage

Now that you know what to look out for, it’s time to discuss some measures you can put in place to ensure you make the most of these cards in three easy steps.

1. Do your homework

There are plenty of options out there. The important thing is to pick a card that’s right for your situation. If it’s going to take you a while to pay off the card, pick one with a low interest rate. If you think you can get it done quite quickly, pick one with a generous interest-free promotional period, which will normally be between 6 and 18 months.

2. Cancel your old credit card

As soon as the balance has been transferred cancel your old card so that the temptation to spend on it is gone for good!

3. Create a clear financial plan to pay it off

Work out how long you have to pay the debt off, and then make sure you break it down into manageable payments each pay cycle. After you pay your rent and household bills for the month, you may decide that your credit card bill is the next expense you pay. 

If you need help better managing your finances, get in touch

Credit Cards, Lifestyle, Money Management

Can’t find what you need?

Newsletter

Subscribe to my newsletter and get regular updates on ways to make the most of your finances.

sign me up

INDUSTRY AWARDS

  • Winner – Most Influential Financial Planner 2019
  • Power50 – 50 Most Influential Advisers in Australia 2019, 2018 and 2017
  • Finalist – Female Excellence in Advice 2018 and 2017
  • Finalist – Industry Thought Leader of the Year 2018
  • Finalist – Holistic Adviser of the year 2018
  • Winner – Most Inspirational Woman in Financial Planning 2017
  • Finalist – Financial Adviser of the Year 2017 and 2016

OUR LOCATION

Level 14, 461 Bourke St Melbourne VIC 3000
Postal: P.O. Box 361, Balaclava VIC 3183
Mobile: 0417 167 024

Let’s Connect!

  • Email
  • Facebook
  • Google+
  • Instagram
  • LinkedIn
  • YouTube

What’s news for you

  • Soaring to success in 2021 
  • How important is money to your wellbeing? 
  • How women can build their financial literacy
  • Investing: lessons from 2020 and the outlook for 2021
  • Creative holiday ideas to inspire you 
  • Five ways to shop a little smarter this Christmas  
  • The right times for financial advice  
  • Review of 2020, outlook for 2021 – from Pandemic to Recovery

Adviser Profile | Financial Services Guide
Privacy Policy | Disclaimer

Nicole Heales is an Authorised Representative of Capstone Financial Planning Pty Ltd ABN 24 093 733 969. AFSL 223135 (Authorised Representative Number 312479).

Copyright © 2021 Designed by GWD - Developed by Weblicious Solutions