Surprisingly, while the national interest rate on cash has gone down in Australia the average interest rate on credit cards has risen. Now is definitely the time for Australians to consolidate their credit card debts. Credit card debt is a $50 billion burden on Australians and around $35 billion of that is getting interest added to it. The nation’s interest rate on cash for banks has sunk to 2.5 per cent but most credit cards have an interest rate of 17 to 22 with the highest rate going up to 23.5 per cent. You can avoid high-interest credit card debt with debt consolidation.
High Credit Card Debt
Credit card debt can be a vicious trap and now is one of the best times in recent history to escape that trap. Credit card consolidation can help manage a person’s mounting debt and help them dig themselves out from under those heavy interest payments. A personal loan to pay off the credit cards can have a much more competitive rate and can make the difference between hundreds or thousands of dollars in a very short amount of time.
National interest rates and credit card rates are not specifically linked together and there are some noted differences between the two. The debt on a credit card is not backed up by any collateral and is therefore a higher risk to the credit card companies than a house or a car. Based on that simple fact, the credit card companies can charge much higher rates.
As a consumer, you have the ability to shop around and find a way to consolidate that debt from different credit cards and total them all into one sum that can be charged at a lower interest rate. This is one of the easiest and most reliable ways to cut your interest payments and look to a brighter future without looming debt in your future. Credit card consolidation is the best way to battle large credit card debts and the large credit card companies that charge more and more each year.
The national cash interest rate has nearly halved in recent years but the credit card interest rate has barely budged and in some cases has even gone up. A person with multiple credit card debts has a great chance right now to trade in their credit card bills for one bill with a much lower rate by consolidating their credit card debt today.