Be a smart credit card spender

Playing Monopoly is fun because you are spending up big with fake money. Credit card spending can offer you the same thrill because you are not immediately faced with cash loss but it’s important to spend within your means. Just because you can pay it off over time doesn’t mean you should. Plus, if you factored in the interest you would have to pay on an item, at the time of making the purchase, would you still buy it? 

Personal credit cards are great if you need access to money quickly but plan to pay it back before the interest free period ends to avoid having to pay interest. While this may not be possible for everyone, if you are struggling to pay off your credit card debt, below are some ways that may help you get it under control.

• Do you struggle to pay down your debt each month? Then maybe it is time to consider transferring your balance to a low rate balance transfer credit card. These types of cards are designed to allow you time to focus on paying off your balance without the high interest rates. For instance there are some balance transfer cards that offer zero percent for a certain period (usually six months). Before you sign up, find out what the purchase rates are and what the rate will be once the introductory period is over, as these are usually much higher.
• If you feel you’re getting a bad deal with your credit card, don’t get angry, move your business to another financial institution. To see what other credit card companies are offering and how much you can save, compare credit cards online. Another option is to take this information to your current provider and try and negotiate a better deal.
• If you aren’t using or don’t need one or more of your personal credit cards, get rid of them or cancel some and start a new card with an introductory rate for a limited time. Not only can you save on annual fees but you could save more in interest charges.
• If your credit card provider sends you a letter or email informing you that your interest rates will rise, don’t accept it, look for a better value card by comparing credit cards online.
• Personal credit cards are not free money, so try not to lose track of your spending and get into debt. Keep track of all of your spending and aim to pay off the balance each month to avoid paying interest.
• If your credit card looks cool or you have been with your financial institution forever, you aren’t necessarily getting the best deal. There are a range of credit cards available that can save you more.

Now that you’re armed with the knowledge to manage your credit card you can start shopping for the perfect one for you. Compare interest rates, card levels and features of over 200 Australian credit cards using the RateCity credit card comparison tool.

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