'Be careful' when transferring debt on to credit card

There are dangers associated with transferring debt to a credit card, one industry expert has said.

Australians need to be careful when they transfer debt over to their credit cards.

This is according to one critic who believes there are a lot of dangers associated with making the move.

Noel Whittaker, writing for the Coolum and North Shore News, said one of the main problems is when people are spending the minimum to clear their credit card because it will not be enough to cover the monthly interest if they have large arrears.

And this could be an issue as there is no interest-free period on Aussie credit cards if a debt is not paid off in full.

But Mr Whittaker added: "If your money management skills are in such a dreadful state that you need to transfer your credit card balance to a low interest rate card, make sure you lock your new card up and don't make any purchases on it."

This advice comes after Nicole Pedersen-McKinnon, writing for Business Day, stated that it is people's own fault if they have to pay interest on top of interest.

By Mark Hornby