Sydney, New South Wales, Australia (PRWEB) January 12, 2013
Worried consumers kicked off the annual credit card pilgrimage two months earlier than usual. The rush for balance transfer cards that normally hits a peak after the January retail sales, swung into action two months earlier, according to Roland B Bleyer, founder of finance comparison site http://www.creditcard.com.au/?
The chance to cut their credit card interest rate to zero is a powerful magnet for consumers. If it were not for the current state of the economy and the underlying market sentiment we wouldnt normally see the frenzy of credit balance transfer activity that occurred in November and December, said Bleyer.
The phenomenon of the annual credit card pilgrimage usually explodes in early January and continues right through to after Australia Day (26 January) when consumers inevitably react to the high level of debt they piled on over Christmas and the Boxing Day and New Year retail sales. They stampede for the chance to get a zero interest rate on existing debt so more of their payments apply to the principal balance. That helps them pay down the Christmas and January sales debt faster while saving money on interest. For example, a $ 3,000 debt balance transferred for a zero interest free period of nine months could save a consumer $ 382.50 in interest. The figures may vary a little depending on what factors such as facilities and fees may apply.