ADR Wealth | Superannuation | Age Pension | Investment | BrisbaneADR Wealth | Superannuation | Age Pension | Investment | Brisbane
Wealth Strategies Specialist
  • Home
  • About
    • Testimonials
  • Services
    • Earn Money
    • Paying Off Debt
    • Insurance
    • Kids & Money
    • Nearing Retirement
  • Advice Process
  • Blog
  • Get in touch
  • Portal Login

Follow Us

E: d.rylah@adrwealth.com.au | Portal Login
Enjoy a credit card holiday
July 12 2019

Enjoy a credit card holiday

admin Financial Planning, Money Management, Saving, Spending Credit, Credit Cards, Debt

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

Forward this article to a friend
The four main risks facing tradies 7 ways to invest in your future

Related Posts

Soaring to success in 2021 

Financial Planning, Lifestyle, Saving

Soaring to success in 2021 

2021 – A list of lists regarding the macro investment outlook

Financial Planning, Investment, Money Management

2021 – A list of lists regarding the macro investment outlook

Goal setting made easy with the H.A.R.D approach 

Budgeting, Financial Planning, Money Management, Saving

Goal setting made easy with the H.A.R.D approach 

Search

Recent Posts

  • Soaring to success in 2021 
  • 2021 – A list of lists regarding the macro investment outlook
  • Goal setting made easy with the H.A.R.D approach 
  • ‘Tis the season for wise spending decisions
  • The right times for financial advice

Categories

  • Budgeting
  • Debt
  • Financial Planning
  • Insurance
  • Investment
  • Lifestyle
  • Money Management
  • Saving
  • Spending
  • Superannuation
  • Tax
  • Uncategorized

ADR Edge

Sign up to our Newsletter

* indicates required

Norwest Central
Suite 610/12 Century Circuit
Norwest NSW 2153

M: 0428 092 928
E: d.rylah@adrwealth.com.au

Our Services

  • Earn Money
  • Paying Off Debt
  • Nearing Retirement
  • Insurance
  • Kids & Money
© ADR Wealth 2019 | Privacy Policy
AD Rylah Trading Pty Ltd t/as ADR Wealth is a Corporate Authorised Representative of Synchron, AFS Licence No. 243313

The information posted is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. In particular, you should seek financial advice and read the relevant product disclosure statement (PDS) or other offer document prior to making a decision.