A lot of people end up going into debt when they use their credit card for things that they shouldn’t. Read this article to find out how to control your credit card spending and what you should be using your card for.

In February 2010, over $18 billion worth of purchases were made by Australians using a credit card. This was a 6% increase from January according to the Reserve Bank of Australia. Also, according to the RBA, $3250 is the average balance on a credit card in Australia. Credit card transactions are increasing once again which is a sign that consumer confidence is rising as well.

Staying on top of your credit card spending

Before you get too confident and start adding more debt to your credit card, here are a few suggestions to help you stay in control.

1. Avoid using your credit card for everyday purchases

Dun & Bradstreet, a credit reference agency, have reported that many Australians use credit cards to get by and make everyday purchases such as groceries with them. The number of Australians resorting to their cards for everyday items is 40%. If you find yourself in this position then you should take a look at your budget and see where you can save some money. Make a list of money coming in and money going out and prioritize what you absolutely need to buy and what is a luxury. Take out some of the luxuries where necessary.

2. Make use of your debit card.

Over the last 12 months debit card usage has risen more than 30% while credit card usage has only risen 6.69%. Debit cards give you all the convenience of using a credit card without the risk of going into debt.

3. Use discipline

Consumer behavior can often be swayed through advertising media. If you have a predetermined list of what you are going to purchase before going out shopping, you can avoid a lot of impulse buying. You must also remember that the credit limit on your credit card does not determine how much you are able to spend. Your monthly budget will be the deciding factor on that.

4. Avoid making any cash advances

Every time you use your credit card to make a cash advance you will be charged a fee and sometimes this can be very high. Use this special feature on your credit card only for emergencies and you’ll save a lot of money.

5. Watch the interest

Part of saving money on your personal finance is watching how much interest you are paying. A lot of people end up in a situation where they are making monthly payments to their credit card that only cover the interest charges that keep adding on. If this is the case for you, a balance transfer card may be the answer. The interest rates are very low, which gives you a chance to catch up on your debt.

You can get back in control with your finances and your credit card by using the five tips listed above. It will take some effort on your part, but it will feel great to finally get out of debt.