Hi
I need your suggestion/advice. I have a fresh $13,900 debt on my credit card (just bought a new Hyundai Getz). In the past, I always pay off my CC debt promptly.
My first option is, as usual, to pay it off when it is due this 18 May. In order to pay, I will need to redraw the money from my variable homeloan (current interest rate 4.9%pa).
However, yesterday i received an offer from ANZ to transfer my credit balance with only 2.9% pa for the first 12 months; and with $56 annual fee. I am thinking to transfer my debt to ANZ and pay the interest only for 12 months. From my understanding, even paying the CC interest rate, I will be still saving 2% (compare to taking redraw from my variable homeloans which has 4.9% pa interest rate).
Is my calculation correct? Or credit card interest rate is calculated rather differently from homeloans.
Thank you!
ONZ