• If you can, pay off your credit card in full before the due date, every month.
• If you can’t pay off the amount in full, pay off as much as you can, then continue to pay it off in small chunks as soon as you are able to.
• If you can’t pay off your credit card in full each month, make sure you have a low interest credit card (somewhere under 10%). It is completely irrational to be paying credit card interest over a prolonged period at a rate of 18% or higher.
• If you have accumulated a large amount of credit card debt, consider applying for a card with a zero balance offer. This usually means you will be given a grace period with no interest (often about six months). Make sure you use this grace period to pay off the amount you owe, rather than accumulating more debt on the card.
• It is best to ignore the minimum payment amount on your monthly statement. If you fall into the minimum payment trap you might be paying off your card for the rest of your life.
If you have a tendency to over-spend each month on your credit card, perhaps you should consider:
• Getting a debit card instead of credit, so you can only spend money you have.
• Leave your credit card at home unless you make a specific plan
A great resource for comparing interest rates on different credit cards, annual fees and balance transfer offers is at: www.mozo.com.au
Anneli Knight is the director of the 10ThousandGirl Campaign: www.10thousandgirl.com
