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Date Published : Friday, March 28, 2008
Credit cards can be great additions to the wallets of many Australians. However, as with just about all financial products, these plastic friends do have good and bad points. Many customers fall into common pitfalls which can force them into protracted negotiations with lenders or even debt problems.
According to UK-based Thrifty Scot, credit cards should "ideally" be used for ease and convenience, with the user being able to afford the bills, plus interest, every month. If not, many consumers often fall into debt quickly.
By failing to keep up with the monthly repayments, customers often get into trouble with credit card providers and with banks, as debt problems accrue quickly, Yahoo! Money claims.
Customers undergoing a credit card comparison should always look at the rates of interest charged on credit cards before they sign up to a deal. Paying an unnecessarily large rate of interest can help add to the financial pressures and is one of the most common pitfalls of customers when they take out a credit card offer.
Thrifty Scot added: " Another thing to avoid is spending on the card, as any purchase balance will usually get trapped behind the transferred balance, where it will accrue interest whilst your monthly repayment are allocated towards the interest free transferred balance."
Customers should always read the small print on credit card offers before signing a deal, so that they know exactly what they are agreeing to and what the terms and conditions are.
Compare credit card offers.
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