1. What is a 0% APR Balance Transfer?

A 0% APR balance transfer allows you to move existing credit card debt to a new card with a 0% interest rate for a promotional period. This can help save money on interest while you pay down the debt.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( P \) — Transferred balance (AUD)
• \( F \) — Transfer fee (AUD, typically 1-3% of P)
• \( D \) — Monthly payment amount (AUD)
• \( T \) — Time to pay off (months)

Explanation: The equation calculates how many months it will take to pay off the transferred balance plus any fees at your chosen monthly payment amount.

3. Importance of Calculating Payoff Time

Details: Knowing your payoff time helps ensure you can clear the debt before the promotional period ends and regular interest rates apply.

4. Using the Calculator

Tips: Enter your transferred balance in AUD, the transfer fee (usually 1-3% of balance), and your planned monthly payment amount.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical balance transfer fee in Australia?
A: Most Australian banks charge 1-3% of the transferred amount as a one-time fee.

Q2: How long are 0% APR promotional periods?
A: Typically 12-24 months in Australia, though some offers may be shorter or longer.

Q3: Should I pay more than the minimum payment?
A: Yes, to ensure you clear the debt before the promotional period ends and interest starts accruing.

Q4: What happens if I don't pay off in time?
A: The remaining balance will start accruing interest at the card's standard rate.

Q5: Are there alternatives to balance transfers?
A: Personal loans or debt consolidation loans may be alternatives, though they typically have interest charges.