The best credit card is a fully paid off credit card, and there are ways to succeed in mastering a card that seems to have taken on a life of its own. Here are our Top 3 Tips to help you regain control.
Knowledge is power
Don’t just rely on “someone else” (the government) to make the rules. We have enough already in the nanny states of Australia. Make a point of educating yourself on the quirks of credit cards and you will be better equipped to make more informed choices.
Choose the right credit card
It sounds obvious but credit cards are now tailored for different market segments. A great card for a big spender will be the complete opposite for a person who struggles to pay off debt each month. Determine your spending profile and stick to the cards that suit the way you spend and repay.
Switch to a low-rate card
If you can’t pay your card off in full each month and it’s costing you over 15%, switch to a low rate card and ease the burden. Balance transfer offers are worth looking into but you need to be aware of the pros and cons of these offers. For more, read our article on balance transfer tricks and traps.
If your credit card is out of control, stop the cycle and go back to the basics. Low rate, low fees, no additional spending and consistent repayments will result in a clear credit card and a steely determination to resist the bells and whistles and stick with what you can afford.