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How to refinance credit card debt

Juggling different credit card debts can be stressful and expensive – especially if you’re paying a lot of interest every month. Holding multiple credit cards can also mean you pay multiple fees, including annual card fees.

The good news is there could be ways to combine your credit card balances into other forms of debt to access lower interest rates and make it easier to manage your repayments.

Refinancing with a personal loan

Consolidating several cards and loans into a single personal loan could help you lessen the amount of time you give to managing personal debt.

The potential benefits include:

  • A fixed term – with a personal loan, your repayments are calculated so that your debt is paid off at the end of the term.
  • A lower rate – A personal loan may be able to give you a lower interest rate than your credit cards, which might save you money as you pay your debt down. Interest rates on personal loans are typically lower than credit cards, varying from 8.49% p.a. to as much as 15% p.a., while credit card rates can vary from 9.90% p.a. to more than 20% p.a.
  • Repayments comprise interest and principal – credit cards usually only require a minimum repayment to cover interest charges. Personal loans have set repayment amounts that encompass both principal and interest.

Consolidating with a balance transfer

Using a balance transfer to move multiple credit card and store card debts onto one new card with a lower rate can sometimes be an effective way to save on interest. Advantages could include:

  • A 0% p.a. or discounted balance transfer rate – many credit cards offer a low or even 0% p.a. promotional balance transfer rate that lasts for a number of months, which might help you save on the credit card interest you’re already paying. If you like, take a look at our current balance transfer offers.
  • A balance transfer repayment plan – a balance transfer can provide a good incentive to pay down your balance before the end of the promotional term, after which the rate switches to one of the card’s standard interest rates. Westpac can help you work towards this goal with a SmartPlan, which is like a payment plan for your credit card.

If you're ready to get started, have a look at the balance transfer offer.

Want to learn more about balance transfers? Here are 5 things you ought to know before you take out a balance transfer.

Things you should know

Credit criteria, fees and charges apply. Terms and conditions available on request. Switches, upgrades or customers accessing employee benefits are ineligible for balance transfer offers. Our balance transfer offers may be varied or withdrawn at any time and are not available in conjunction with any other promotion.