0% balance transfer 'great way to get on top of debt'

Sorting out debt can be made easier with a 0% balance transfer, according to Money-AU.

A 0% balance transfer is one of the best ways of sorting out your debt, according to Money-AU.

The Australian finance news site recommends moving your credit card on to another card to take advantage of the low rate if you have debt issues.

To avoid a high annual percentage rate – how the loan is repaid, the rate of interest and loan fees – the remaining balance should be moved to another card.

The first step in the path to sorting out your poor finance is creating a target to be debt-free, according to the site.

It says: "There are a number of really simple things that can be done to achieve that goal such as budgeting your expenses and keeping a diary of your spending habits."

The idea is to be able to use any spare cash to slowly begin to decrease your debt, which includes identifying areas of luxury spending to try and cutback on.

Consumers should also work out how much they spend on debit and credit cards by making a list of their monthly spend, the resource previously noted.

However, one option to get out of borrowing on an overdraft a regularly is moving to a current account that offers a low interest rate.

Taking advantage of a 0% 12 months overdraft facility would be a shrewd move, but only if frequent payments can be made.

Money-AU said: "These offers are only introductory, so you should be aware that once the offer period is up, you will have to make regular interest payments, so you should make every effort to get back into the black as soon as possible."

If things are so bad that another bank account or creating a savings account will not suffice then counselling and advice services are usually available to help and often can be accessed for free.