Hit back against Credit Card Fees

Tuesday November 13, 2007

Banks and other financial institutions are far from shy about passing on credit card fees to their customers. More and more Australian's are now starting to hit back against the credit card fees with one in three making the effort to at least complain to their financial institution.

The Reserve Bank of Australia has given the green light to merchants to now pass on their charges to you, the consumer, add that to the credit card charges from the banks and you are on the receiving end of a double whammy for making the banks shareholders richer.

One of the main uses of credit cards in recent times has been for credit card holders to use their credit cards as short-term cash solutions until their next payday. When you do this, you get charged immediately with no 55 days grace for cash advances as is the case with credit card purchases.

The majority of people have more than one credit card. One of the advantages of having more than one credit card is that you can use your second credit card as a safety net to make sure you always have access to cash to make your monthly repayments on time, ensuring you always enjoy your 55 interest free days.

More than half of Australia's credit card holders have been stung with some sort of late penalty charges. Unfortunately the banks and financial institutions will always charge these fees and they can make a considerable dent in your next pay packet if you have an outstanding credit card payment to make.

Interest rates are on the rise with most people seeing their home loan repayments going up anywhere between $20 and $100 per week depending on the amount that they have borrowed. This is money that could have been used to make that late payment fee, now you have to feel the pinch that little bit more until your next payday, or do you?

While the banks and other financial institutions have wasted little time in lifting home loan rates while announcing record profits a day or two later, they do offer credit card holders a way out of debt at minimal cost.

Get rid of your Credit Card Debt

If you are tired of carrying a credit card debt you may want to consider transferring your account to another financial institution. Many people think of doing this, transferring their account to another bank, closing their existing bank account when they are slugged fees and their complaint falls on deaf ears.

That's actually a very good idea because the financial institutions offer you special deals to get your credit card business.

One of the products that financial institutions have introduced to gain your business is the Balance Transfer Credit Card. These credit cards have special introductory zero and low interest rates to gain your business.

Special introductory low interest rates give credit card holders plenty of incentive and help to wipe out their credit card debt. There is no need to carry your credit card debt for an extended period of time when you can transfer it to another bank and enjoy an interest free period for the life of your outstanding debt.

The terms and conditions of these products vary from bank to bank so you will have to make sure that the credit card you seek is the one that best suits your financial situation. Not all balance transfer credit card accounts have a special introductory rate for the life of your debt. Some financial institutions give you only six months grace at a zero or very low interest rate.

Visit the Credit Card Comparison Chart to find the best Balance Transfer Credit Card for you.

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