 Take control of your credit card debt
Consumers are being urged to use caution when spending on credit cards leading up to Christmas.
To avoid starting 2010 in a 'debt hangover' people should only use their credit cards sparingly and look at reducing the credit limit.
Credit Union Australia says those using credit cards during the festive season should make a budget and plan for over payments. Chief executive Chris Whitehead says the average credit card balance was actually slowing in growth, which showed consumers were being careful with debt and more conservative with spending.
"While these figures show people are learning to manage their debt and pay it off quicker, there is no room for complacency and consumers should continue to pay off any existing credit card debt and spend smartly over Christmas," he said.
Shoppers who use their cards to make Christmas purchases need to be aware of their interest-free periods, and ensure the balance is paid off before this ends. Mr Whitehead says unfortunately some people find other expenses crop up and then see they are financially overcommitted.
Retailers are forecasting strong Christmas sales, with Myer and Harvey Norman confident the economy was improving.
"Confidence is growing by the day and I think we'll have a very, very good Christmas," Mr Harvey said.
Mr Whitehead had some simple tips for managing credit card debt:
- make a list before going shopping
- make a budget and stick to it
- shop around for the best rates
- use interest free periods
on credit cards properly
- reduce the credit limit and reduce the exising debt
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