Featured Manageable Credit Card
The St.George Vertigo MasterCard is a very easy credit card to manage as you can switch over to eStatements and manage all your credit card statements online. You will also save with a fantastic introductory offer on purchases and balance transfers for the first 6 months
- $55 annual fee
- 13.24% p.a. on purchases
- 0.99% p.a. for 6 months on balance transfers
- Cash Advance Rate of 21.49% p.a.
- 55 days interest free
- Minimum Income Requirement of $15,000 p.a.
- Canstar Cannex 5 star rated card
Credit cards are a very convenient tool in our lives. But just like any powerful tool they can be abused, and end up hurting instead of helping. This article will outline some steps you can take to better manage your credit card, and stay in control of your own finances.
Most people fail to realise that a credit card has to be used with caution, or else it can cause all sorts of financial havoc. The fact that credit card debt is a loan, and like any loan from a bank it has to be repaid, can be overlooked by cardholders. There are occasions when you genuinely need to avail yourself of a loan, but a credit card might not be the best option. If you find yourself in situations where your card debt keeps getting out of hand frequently, you need to take a step back and evaluate the way you use your credit card. Use the following pointers as a guideline to manage your credit card, and you can avoid getting into troublesome spots with your debt.
How much to borrow
Your credit card transactions are borrowings from the bank. If you are not fully aware of your earnings and expenditure levels it is a bad idea to take out a loan in the first place. Apply the same principles to your credit card debt, and you’ll have a better idea of how to manage your credit card usage levels.
The key to maintaining a healthy level of debt is to know how much to borrow. That depends directly on how much and how fast you can repay the debt. Proper budgeting of your income and expenses in vital. If you can estimate or forecast your earnings and future spending requirements with a reasonable degree of accuracy you are well on your way. Feel free to seek the help of family or friends who are better versed at this, or consult a financial planner if possible.
Once you know the level of debt you can comfortably maintain, be disciplined in credit card usage. Never take on more debt than your established maximum, and always strive to keep credit card borrowing to a bare minimum, only buying the things you need most.
A common mistake made by cardholders is in judging what’s essential and what is not. Spending that extra money or shopping in that particular store in search of bonus reward points is absolutely not essential. Cut down on non vital expenses, and move your cash withdrawal or other transactions to a debit card
Best Practices
Here are a few things you should practise to manage your credit card in the best way possible:
- Set up an auto debit for the minimum payment amount. If you miss any due date your credit rating may take a hit, not to mention the fines you will have to pay.
- Never use your credit card for direct debit payments
- Always try to pay more than the minimum balance due, every extra bit helps reduce the interest charges
- If possible pay off your full balance every month – this effectively makes it a debit card, that way you never have to pay any interest.
With the above best practices in mind and by using common sense when you borrow you can keep a handle on your card at all times. Keeping control of your finances is the very best defense mechanism you can have against credit card debt.
