Payday loans - cash advance Australia

Now that you’ve taken a look at different kinds of credit cards, you are probably ready to take the plunge and get one for yourself. I have to tell you, though, credit cards can be a liability if you do not handle them correctly. How many stories have you heard about people getting buried in debt because of overusing their credit cards? My point exactly.

Here are some ways you can avoid credit card traps and stay financially sane.

Avoid cash advances
Believe me, this is very tempting, especially when you have no more cash and you cannot use your credit card in lieu of cash. However, do not take out a cash advance. All the perks your card may have do not include cash advances.That includes zero interest periods. The moment you take out a cash advance, you pay interest at a higher rate. More than that, you will probably be charged a considerable withdrawal fee.

Do not pay the bare minimum
This is a lengthy topic that can be discussed on its own but I feel the need to touch on it now. Credit card statements will show you in bold – MINIMUM PAYMENT REQUIRED.

Don’t fall for that. If you pay the minimum, you will still be charged interest on your remaining balance. Pay it all of if you can. If not, pay as much as you can towards your bill. Why do you think the minimum payment has gone so low? I say it’s to make you think that you are doing ok paying off some amount each month while in the meantime the interest is doubling up on you.

(to be continued)

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