'Transfer balance' to repay faster

Credit card balance transfers can be one way to clear the amount owed more quickly, reports the Sydney Morning Herald.

Readers are told to be savvy about how they use such credit cards, however, due to the punishing rates of interest often charged on new purchases.

For people who do not need to place any more purchases on their plastic, the article suggests a balance transfer could be a wise option.

"Making minimum payments is not going to do the trick but there are ways to help yourself," the publication asserts.

"You could, for instance, transfer your outstanding balance to a card with a six-month no-interest period."

However, this is not a practice which should be undertaken too frequently, as the article adds that each application for a new credit card will appear on an individual's financial history.

Future applications could be jeopardised if a high number of attempts to arrange credit are interpreted as a risk.

The publication advised readers earlier this month that switching credit cards could be wise as two-thirds of products on the market had not passed on rate cuts to customers.