Tips on using your credit cards

Credit Cards - sure, you're familiar with these magic plastic cards – it’s money readily available, but how much is it costing you?

You use them for all types of household and family items … groceries, petrol, dinners out and more.

You get the statements every month. But how well do you really know your credit cards? 

Credit card companies are in trouble.

Since more and more people are defaulting on their debts, they're making everyone pay for it by changing their terms, making carrying debt more costly.

The more you know about our credit cards, the more control you'll have over your debt. Here's what you need to know:

• How many cards do you have? You should only have two credit cards in your wallet at any given time. These two cards should be the cards you have with the best terms—lowest fees, largest limits and maybe even points!
• What are your interest rates and fees? If you don't pay your credit card balance in full each month, you'll want to pay extra attention to the APR, which stands for annual percentage rate. Finance charges on your credit card statement each month can be high so check out the rate … the lower, the better. 
• Do you pay your credit card bill at least five days before it's due? If not, you should. Until a new regulation comes into place next year, credit card due dates can be due at specific TIMES! So if your bill is due the 15th, it may be due the 15th at 8:00 AM! Be careful … it may cost you with late payment fees etc.
• Are you paying off the right card? The best (and fastest) way to pay off credit cards is to throw the most money at your balance with the highest interest rate while you pay the minimum on all your other cards.

If you are having money or credit card problems, go to moneyforlife.com.au for some solutions.

As this is my last blog for the year I'd like to wish you a great Christmas and New Year.