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Date Published : Wednesday, April 02, 2008
A recent study found that many Australians are changing their spending habits as a result of the recent credit crunch.
While many major banks and businesses have been affected by the shifts in the markets, a large number of consumers are also changing their spending patterns - cutting down on non-essential items.
In order to attempt to stop rising debt problems, many Australians are considering switching their credit cards to find a better rate of interest elsewhere.
A study by Dun & Bradstreet found that the average value of a referred debt jumped by 22 per cent during 2007, as the credit crunch began to bite into the finances of many consumers.
As a result, lower interest rates on credit cards are being sought by consumers, in a bid to get on top of their finances.
Responding to the demand for low-interest credit cards, the major banks and retailers of Australia have started offering a wider variety of credit cards to consumers, in order for them to deal with their finances.
Many credit card providers now offer an introductory or 'honeymoon' interest rate card. All purchases made within a specified term following card issue - generally around six months - automatically attract this reduced rate.
Honeymoon rates can be as little as half the usual credit card interest rate so it can be financially rewarding to choose a card providing this feature. However, the standard interest rate may be much higher than average, cancelling out any initial benefits gained.
Compare credit card rates.
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