Annie has received an offer in the mail to transfer her $4000 credit card balance to a ne provider. The offer is ‘low rate and no fees. The rate offered is 4.99% p.a. compounded monthly for 6 months with no application fees or transaction fees. However, in the terms and conditions it says
- after the 6month introductory period, the interest rate ill reverts to 18.6 p. a, which is a variable rate.
The transferred balance will be repaid first
Government charges and a late payment fee may apply
Minimum monthly repayments are required to be 3 of the outstanding loan amounts of $30, whichever is the greater
a) what advice can you give Annie
b) why might Annie consider switching to a new provider?