Aussie Home Loans, has cut its ongoing interest rate on the Aussie MasterCard by 0.25% p.a from 11.74% p.a. to 11.49%, p.a. following today’s decision by the Reserve Bank to drop the cash rate.

Chairman of Aussie, Mr John Symond, said “We have cut our card rate to provide all credit card holders with the chance to reduce their debt levels.

“It is time cardholders took a serious look at the rates they are paying on competing cards, as they are wasting thousands of dollars by sticking with high rate credit and store cards, instead of consolidating their debts into a low rate credit card.

“By cutting up their store cards and other high rate cards, card holders can consolidate their debt and lower their monthly repayments with a low interest rate card like the Aussie MasterCard. Customers need to get the message that a low rate card is preferable to paying a high rate with the frills of rewards schemes and other incentives”, added Mr Symond.

Total credit card debt in Australia now stands at more than $40 billion with around 14 million cards in circulation - each of which carries average debt worth around $3,000.

Mr Symond concluded, “Consumers should be acting now to get a competitive rate on their credit card, especially as the economy heads towards a slowdown in activity”.