Northern Beaches Mums Group
Northern Beaches Mums Group

Credit Crunching

How would you feel about paying an extra 15% more for everything you buy? If you don’t pay off your full credit card balance each month, the chances are that you are already paying that much in interest as rates range from 8% for low-fee cards to a whopping 21% for cards dripping in rewards.

Buying what you want when you want feels good, but a bargain is not a bargain if it comes with hefty interest charges. Therefore, there is never a wrong time to get credit-wise and stop dropping your hard-earned cash on padding out the banks’ profits.

Going interest-free:

User your savings
Use your savings to cancel your debt, as any returns you will be earning on your savings will not match the interest rate your credit card provider will be charging.

Go low
Switch your balance to one offering a 0% grace period and use that time to get serious about reducing your debt or choose a card with the lowest interest rate you can find instead.

Broker a new deal
As home loan interest rates are at an all-time low, it has never been a better time to consolidate your debts into one manageable sum. Get in contact with your Mortgage Broker and talk about refinancing your home loan to incorporate your credit card debt. It is an easy process that could save you thousands of dollars.

But just remember – once you have paid off your credit card debt, keep it off! Debt is like a diet; you have to work at keeping the numbers off.

This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.


Louisa Sanghera is a Finance Broker for Residential Mortgages, Vehicle and Asset Finance, Commercial Lending and Budgeting and Cashflow Coaching with Zippy Financial.

She has gained more than 30 years in the Banking and Industry, and since founding Zippy Financial, has become a multi award nominated expert in the field of finance featuring regularly in industry press and speaking at finance and investment seminars across the country.

Phone: 1300 855 022
Email: louisa@zippyfinancial.com.au
Website: www.zippyfinancial.com.au 

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