Put your finances in order in 2008

1 January 2008

Pre Christmas shopping and post Christmas sales would have had a major impact on many credit cards around the country and towards the end of the month we will all be getting a statement telling us exactly how much damage we have done.

Let's not forget the impending home loan interest rate rise in February which will see many households have to find anywhere between $20 and $200 to meet their monthly obligations.

One way to ease the burden of our credit card debts is to transfer them to another bank.
Since the Keating Government has deregulated the banking sector there is plenty of competition amongst the banks to gain your business and boost their profits for shareholders.

A balance transfer credit card offered by the majority of banks and other financial institutions offers you the opportunity to basically take out a loan (the balance of your existing credit card) and repay it at zero interest for a period, which could range between 6 months to the life of your outstanding balance.

Conditions vary amongst the banks and financial institutions, some offer 6 months zero percent interest charge while others offer you a low interest charge, be sure to check and fully understand exactly what you are signing up for if you do agree to a balance transfer credit card account.

Especially with interest rates likely to rise next month, repaying your credit card at a low or zero rate for six months appeals to many credit card holders who can take advantage of repaying theircredit cards faster by having the whole repayment going off the principal amount that they owe and not just a portion.

If you have large outstanding debts then a personal loan may be a better option to get your finances in order for the New Year. A personal loan can consolidate your debts for you and give you one easy payment to make each month or fortnight, rather than trying to juggle your money paying what seems to be too many bills.

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