Curbing your credit card spending debt

RateCity Staff

RateCity Staff

( 3 min read )

It’s amazing how much joy a little plastic card can bring into your life. Whether you are doing a spot of online shopping, booking a holiday or ordering tickets to a show, it’s always satisfying making purchases but afterwards, when the debt rolls in, the joy can quickly dissipate.

Be a smart spender

It seems obvious but the key to credit card spending is to be conservative and don’t spend more (outgoings) than you earn (incomings) as you will find it difficult to pay back what you owe and it will take longer to pay it off.

Choose wisely

When choosing a credit card, compare cards with low interest rates, long interest-free periods and low or no annual fees and rewards programs. Find a card that suits your spending habits; compare credit cards on our credit card page.

Match your credit card to your spending habits

How you use your credit card can directly determine what type of credit card you should own. Check out these four spending types to see what type of spender you are and what type of card would best suit you.

  • Habitual spender: Are you in constant credit card debt, struggling to meet your monthly repayments? If so, you should consider a low interest rate card with no, or a very small, annual fee.
  • Impulse/Occasional spender: Do you rack up your credit card debt on Christmas shopping, holidays or on one-off occasions only? You should definitely keep an eye out for a low rate credit card or consider a debit card, if you only need it for online purchases or when travelling. 
  • Everyday spender: You love the convenience of your credit card and use it every day but you also make sure you pay it off every month. If you pay off your debt on time then rewards will be more enticing than interest rates so look for a card with a great reward program offering cash back, frequent flyers, merchandise or gift cards. Be aware that these cards usually come with higher annual fees so shop around to find the best one. 
  • Big spender: Hey big spender, are you earning a high income, use your credit card for all your purchases and pay it off on time every month? If so, you may want to consider a platinum credit card or any card offering great rewards that you could use often. While these cards will come with much higher annual fees and interest rates, they will also give you free travel insurance and reward programs that include entertainment, accommodation and travel perks.

Spend with more ease of mind by finding a credit card that will cater to your spending habits by offering you greater rewards or lower interest rates.

Kick start your search for you perfect plastic companion by using the credit card comparison tool to compare over 200 Australian credit cards. 

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