Best Credit Cards For Clearing Debt

If making a decision to get rid of credit card debt is the first step towards better financial management, then finding the right credit card is not too far behind.

Whether you want to throw away all your credit cards after getting rid of the debts, or just want to find something a bit more manageable for your lifestyle, it is always good to look at different credit card options that can make things easier.

Credit Cards For Small Debts

Many people will jump at the chance to take advantage of a zero interest balance transfer offer, but these cards should be carefully considered before they are chosen.

While they will definitely help people get rid of smaller debts without worrying about interest, it is good to consider ongoing card use and how the debt built up in the first place. If it was a once-off purchase or emergency that led to the debt, the best credit card may actually be the one you already hold.

If, on the other hand, you want to clear small debt and close the card account, then an offer like the Virgin Flyer’s 0% interest for nine months could be a dream come true. Just remember to factor in other costs, like annual fees, as well.

Credit Cards For Substantial Debts

A debt that will take up to 12 months to pay off can still get a lot of benefit out of balance transfer offers, but the longevity of the credit cards should also be considered.

The ideal card will be one that reverts to a relatively low rate after 12 months, in case payments go awry throughout the year. Something like the ANZ Low Rate credit card may be ideal because it has a 12-month balance transfer offer of 2.9% p.a. before reverting to the low purchase rate of 13.49% p.a.

Credit Cards For Ongoing Debt

Unlike smaller debts, if a balance will have to be carried for over a year, then the introductory transfer offers will not have too much impact and it could be better going for a card with the lowest ongoing rate.

Something like the Bankwest Lite MasterCard, with 5.99% p.a. for the first 12 months and an incredibly low ongoing rate of 10.75% p.a. will help keep the interest manageable so that you can chip away at the debt more quickly.

But if the debt is that big, there is a chance that new card applications will not be approved and you may be better off sticking with your current card provider.

Discussing credit card debt with your provider is a good option no matter what plan of action is being considered and can lead to solutions that you may not have been aware of in the first place.

With these offers and your current card in mind it should be a lot easier to work out ways to get debt down and work towards being debt free.