Big Christmas spenders will save if they switch cards now

10 December, 2015

Industry super fund-owned bank ME is challenging Christmas shoppers and holidaymakers to switch to a low-cost credit card if they’re concerned about paying off their credit card in January.

The Bank expects Australians will spend an extra $648 million on credit cards this December.

Much of which will turn to debt come January, according to ME research that shows that 37% of cardholders revolve their debts on a regular basis.

Families are likely to be worse off, with schooling and holiday care expenses also landing during January, pushing up against Christmas expenses.

“If you know you’re unlikely to pay off your Christmas expenses immediately, a smart move is to minimise the interest you will incur,” said ME Head of Deposits and Transactional Banking, Nic Emery.

“Switching to a credit card with a low interest rate, even just a few percentage points lower, could potentially save you hundreds of dollars in the New Year.”

ME’s low-cost credit card, frank boasts no annual fee± and a low variable interest rate for both purchases and cash advances* at 9.99% p.a.^ (cash advance and transaction fees may apply)

frank’s simple yet appealing features have been recently recognised by reputable organisations such as:

  • Money Magazine Cheapest Credit Cards, 2016(1)
  • Mozo's Best Fee Free Credit Cards, 2015(2)
  • Mozo’s Best Low Rate Credit Cards, 2015(3)
  • Canstar 5 Star Outstanding Value Credit Cards, 2016(4)

For more advice on playing your cards right, call ME on 13 15 63 or visit mebank.com.au.

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Things you should know

^Interest rate current at 18 December 2015 and subject to change.

*Cash advance fee of $4 or 2% of the amount of the cash advance (whichever is greater) and other transaction fees may apply.

±Terms, conditions, fees and charges apply and are subject to change.

(1)Winning cards were ranked by total cost to cardholders (including interest and annual fees) of revolving a $2,500 debt over the prior 12 months.

(2)Winning cards were judged the easiest for cardholders to avoid paying any fees as long as all spend was Australian purchases and they paid their outstanding balance in full each month.

(3)Winning cards were judged the cheapest for cardholders with an ongoing revolving balance.

(4)Cards were awarded stars based on features including fees, interest rates and number of interest free days. Cards that obtained a score in the top 10% received a five-star rating.

Applications are subject to credit approval. MasterCard and the MasterCard brand mark are registered trademarks of MasterCard International Incorporated.