Managing Credit Cards
Once you have a credit card, the ease and flexibility in using it to pay for dinner at a restaurant, to buy tickets over the phone or shop over the internet makes it difficult to imagine life without it.
The convenience, flexibility and easy use of credit cards has seen them become the favoured form of payment for bills and purchases. With more and more people using credit cards, it's no surprise that Australia has one of the highest levels of personal debt in the world.
With offers of pre-approved credit limits being so readily accepted and convenient to use, it's not hard to see how easy it is to get carried away with your spending. Therefore to avoid being caught up in the credit trap, it's important to understand how to use credit cards wisely.
The first step is selecting the card that is right for your needs. There are literally hundreds of credit cards and store cards available on the market but there is no point getting a card that has rewards that you don't value or are of no benefit to you. Before you start comparing cards, decide how you plan to use your card or look at your current spending habits and then find the card that best suits you. Getting the wrong card can cost you more in interest and fees and charges.
Don't forget to consider the alternatives - you may find they are easier to manage. For example, Customs Credit Union's Visa Debit Card* operates just like a credit card but it accesses your own funds rather than using a credit facility. So you get the benefits of a visa card without the added debt.
To help you stay in control of your credit cards, Customs Credit Union have a booklet for Members which contains useful information on the wise use of your credit cards. The booklet includes helpful tips on how to avoid the shock of a huge credit card bill, management tips, case studies, information in value added benefits, how cards work, protecting your card and more.
To download your free copy of the Play Your Cards Right booklet, click here.
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