Balance transfers 'can help keep debts down'

Balance transfers can be an effective means of getting to grips with debt, it has been suggested.

Such products - which could include 0% balance deals - are the credit cards which receive the most enquiries on the InfoChoice website, chief executive Shaun Cornelius states.

"People want to get their debt down and they see the low interest rates on these products as a way of doing that," he tells BusinessDay.

And although Mr Cornelius points out that it makes good sense of use a balance transfer offer to quickly pay off debts, those seeking such products need to so with discipline.

Indeed, he claims that those obtaining this kind of credit card should not use it to make any further purchases, as no matter how much is made in repayments the balance will not be touched until the original sum that had been transferred has been cleared off in full.

Previous InfoChoice research revealed that by taking advantage of balance transfers those Aussies in $10,000 debt could find that they can save as much as $4,300.

Written by Nate Sawyer