Cut up your card costs, not your credit card

Cutting up your credit card can mean losing the convenience and reward points that a well-managed card can deliver. There are ways to cut your credit card costs before grabbing the scissors.

Keep track of due dates, limits and payments to avoid getting stung. Pay the highest interest rate card off first. Avoid cash advances because they attract interest rates up to 29 per cent. Spend less than you earn.

James Hutton, head of consumer cards at ANZ, says paying the balance in full each month is the ideal way to avoid interest, but simply making more than the minimum repayment can help.
“If you have multiple credit cards you should think about consolidating debts onto a no or low interest card,” he says.

Source: The Daily Telegraph