<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australians are carrying $18 billion of credit card debt and there are dozens of 0 per cent interest offers on outstanding balance transfers.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But should you use a new card to pay off the old?</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>There are more than 60 of these offers on the market, luring customers to swap high-interest debt for what looks like a free ride.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/first-guardian-master-trust-superannuation-lost-asic-investigation-exclusive/7a944ee1-faa0-40c0-8972-011f056c9fee"><strong><span>Christian, JC and Johanna are missing a combined $319k in super</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>When used right, the cards can buy people breathing room.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But when the cards are used wrong, people can be redecorating debt rather than escaping it.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In order to win smart, Nine's money editor Effie Zahos said people should play the long game.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/should-you-use-a-new-credit-card-to-pay-off-the-old-one/26f43d75-6277-4b93-8730-61b632433de4" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The longer the interest-free period, the more time people have to pay it off.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>ANZ's Low Rate card leads with 26 months followed by Virgin, Bankwest and Westpac which offer up to 24 months.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Customers should also do their research and know the real rate.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/rba-surcharges-proposal-nsw-pub-owner-says-customers-will-pay-more/ede51b8d-a09c-436d-912b-776a012c8a99"><strong><span>You might pay more for a beer under proposed surcharge ban</span></strong></a><span></span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>ANZ charges a 3 per cent fee to move your old debt, plus a $58 annual fee in years two and three.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>On a $5000 debt, these fees add $266 in costs, meaning that 0 per cent rate is effectively 5.32 per cent over the 26 months.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It is also important for people to have a plan and stick to it.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Divide your total debt by the number of promo months and automate your payments in order to pay off the entire balance within the interest-free period.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>If people miss the deadline, they could face double-digit interest rates that quickly erase any savings.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><em><span>The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.</span></em></div></div>