Credit Cards: everyday essential or headache?

Figures from the Reserve Bank of Australia state that credit and charge card transactions rose in March 2009 by 9.6%. Australian’s had spent $18,775 billion on their credit cards and charge cards this time last year! Reports have shown total credit and charge card balances, outstanding, rose by 4.3% over the previous twelve months and this costs money to the customer and can damage credit rating in the future.

Learning to use a credit card responsibly can save a lot of stress and sleepless nights. Many of us have difficulty keeping our credit card debt under control so the main goal with having a credit card should be to pay off your balance monthly. Rumour has it, that to gain credit with credit card companies you need to carry your balance over to the next month, this is completely untrue. Monthly payments are the smartest way to go, if you’re unable to pay the full amount, pay as much as you can. Do not take the route of paying the minimum monthly amount, as you’re just giving the credit card companies your hard earned cash!

Limit the amount you use your credit card, while attempting to pay off an outstanding balance. Late fees are in fact a way in which credit card companies increase their profit margin. Steer clear of applying for new credit cards until all outstanding balances with your present card company are paid. It’s quite simple really, there’s a credit card known as 'Master' card, don’t allow it to be the master of you!