Credit card debt: from ‘revolver’ to ‘transactor’
News from Adelaide Now:

Credit Card Users Luke Sands and Marta Sliwinska use different approaches to avoid debt. Picture: Philip Norrish Source: National Features

PLASTIC users are a divided bunch. In banking terms, they are usually split into one of two groups: either “transactors” or “revolvers”.

The latter is a financial institution’s preferred customer, with these cardholders only making minimum monthly repayments on their bill and, consequently, paying hefty amounts in interest.

NAB’s acting general manager of cards and personal loans, David Berry, says the majority of credit card users do manage to pay off their card before interest hits.

“Approximately 55 per cent of our customers pay their account off in full every month,” he says.

“Customers who have a large revolving balance on their credit card should move to a low-rate card.”

Transactors are certainly the savvy ones –¬† they use credit cards to their advantage and avoid interest by paying off their bill in full each month.

Luke Sands, 24, says he has a credit card with a $ 1000 limit and pays it off in full each month, while Marta Sliwinsk…………… continues on Adelaide Now

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Related News:

Credit card specials launched
News from Interest.co.nz:

Banks and credit card companies may not be competing on their standard credit card interest rates but they are competing on their balance transfer rates.

Today, Westpac has launched a special 1.99% p.a. balance transfer rate.

They say it is “effective for 9 months. Standard purchase interest rate applies thereafter.”

Or you can take their regular balance transfer deal which is 5.99% p.a. – “effective until the transferred balance is paid off”.

Westpac’s standard purchase credit card interest rate vary between cards, ranging from 12.95% on their low interest Mastercard, to 19.95% on their standard Visa, Mastercard or American Express cards. Significantly higher rates apply when you use your credit card like a debit card for cash advances.

Meanwhile BNZ has made changes today as well.

It’s balance transfer deal is now 4.95% p.a. “for the life of the balance transferred”. ¬†This is a special rate from today until further notice. It is a reduction from their previous balance transfer rate of 8.95% p.a.

BNZ’s standard credit card rates range from 13.25% and 19.95% p.a. Significantly higher rates apply when you use your credit card like a debit card for cash advances.

You can find all credit c…………… continues on Interest.co.nz

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