Credit card debt has reached a record high - and if you're keen to get rid of yours faster, it pays to hunt for the best deal.
At the end of December, we owed $6 billion on our plastic, up 3.8 per cent on the previous year. Almost two-thirds of that is being charged interest, at an average rate of 19.6 per cent, meaning banks are competing aggressively for the profits.
All major banks are offering balance transfer deals, in which people pay a low interest rate on the transferred amount for a fixed term or until it is paid off. For a big debt, changing cards could save you thousands of dollars.
The cheapest balance transfer rate is 1 per cent, from Westpac, for 12 months. If you are paying off a $5,000 credit card balance at $100 a month, transferring to that rate for a year will save you almost $1,000 in interest.
People with a long-term balance who will struggle to pay off quickly can also choose to pay more for a lower rate credit card. These low rates never expire.