If you are looking to transfer your high-interest debt to another credit card with a low or zero percent interest rate, then a balance transfer is your best way to go for substantial savings. balance of $3,000 with a 17% interest rate according to The RBA. If a balance transfer is done with a zero percent interest rate for six months on this balance, the savings would be $250. Think of all the money that could be saved if the balance and/or interest rate on the existing card is even more. Balance transfers are also beneficial when it comes to consolidating paperwork, since several cards are usually transferred into one.

The best aspect about the balance transfers in Australia is that Australian banks rarely charge a balance transfer fee, although they may charge an administration fee which is often low. This differs from the United Kingdom where there is usually a balance transfer fee in place. For this reason alone, many Australian card users are at an advantage when it comes to doing balance transfers on their credit cards.

Although, there are some potential problems when it comes to balance transfers. The first of these problems include a balance transfer to a credit card that also has a high annual fee which would cancel out any potential savings if the balance is already low. Another potential pitfall with balance transfers are that they could affect your credit score if you are applying for several different credit cards in a short amount of time. This is especially true if your balance transfers are denied. In addition, banks regularly charge more on newer purchases which could cancel out any potential savings, it is advised that you should read your bank FAQ's for more information on this topic.

The general rule of thumb is that if a balance transfer is accepted, the existing balance should cross over to the new credit card within two week’s time. The promotional rate on a balance transfer credit card is also usually good for up to three months, but the rules sometimes differ from bank to bank, so it is good to double check the fine print.