Have you ever questioned your need for a credit card? Sure, they do make life convenient. But are they essential?

The benefits of having a credit card:

Online Shopping – This is one area where it is essential to have a credit card. This make online purchases a breeze.

Payment Methods – Years ago, personal cheques were the main source of payments. However, many retailers no longer accept personal cheques as a payment method.

Access to Money – Another advantage is that credit cards can provide and extra buffer if you run short of cash.

We always hear of the disadvantages of credit cards, but as you can see, there are some advantages.

If you like the advantages of having a credit card, but do not want the other problems associated with credit cards, like debt and high interest charges, then there is an alternative.

A debit card may be just the product for you. Debit cards have all the great advantages of a credit card without the associated risks. The great thing about a debit card is that you are using your own money to fund your purchases. This means that there is no risk of getting into debt.

ANZ Visa Debit Card

An Everyday Visa Debit Card from ANZ

Apply for an ANZ Everyday Visa Debit card and pay NO monthly fee for the first 6
months. Get worldwide acceptance of Visa PLUS you can make purchases online,
overseas or over the phone at more than 24 million outlets around the world –
using your own money.

Apply online now for these great benefits –

• $0 monthly fee for the first 6 months
• Use your own money to shop, online, overseas or over the phone
• Unlimited ANZ Transactions for $6 a month
• Protection against fraudulent purchases with Online Guarantee

There are certain things you need to be aware of to avoid some of the pitfalls.

Winning ways with your credit card
Pay off your balance in full – If you can, always pay off your balance in full each month. This way you will avoid all interest charges.

Use a Reward Credit Card – If you can pay off your balance in full and avoid paying in interest on your spending then you are in a great position to benefit from a rewards credit card. Reward credit cards offer all types of rewards which will definitely put you ahead of the game.

Consolidate your debts with a good balance transfer offer – If you combine your credit card balances into one, making use of a balance transfer, you will avoid interest on your debt for up to 12 months. This will give you a good deal of time to getting the debt cleared without paying interest.

Ways to avoid being a credit card loser

Paying Minimum Payment Only – If you regularly only pay the minimum montly repayments, you will be paying a high amount of interest on your purchases. This is probably one of the most important tips to avoid extra changes.

Avoid Spending on your Balance Transfer Cards – If you have consolidated your debts into a balance transfer card, then you should not use this credit card for spending. All your repayments will go towards clearing the balance transfer debt first. This means that any new purchases will be charge at regular interest rate. Any new purchases will start to accumulate and interest charged at a much higher rate. If you do transfer your balances, make sure you have a good low rate credit card for your everyday purchases.

Avoid Unnecessary Fees – Even if you don’t pay off your balance in full each month, make sure that you at least make your payment on time. This will ensure you are not changed a late payment fee. Be aware of your credit limit. Try not to exceed your limit or you may be charged an extra fee also.

Everyday Spending – Try to only use your credit card for expenses that you know you can afford. Many consumers use credit cards as a ways to live from payday to payday and never catch up. Try to avoid spending beyond your means.

By following these simple steps, we can learn how to use our credit cards wisely. We can avoid unnecessary charges and hopefully avoid becoming a victim of credit card debt.

Late Payment Fees:

St.George Credit Cards – $35.00
Commonwealth Bank Credit Cards – $25.00

By setting up a standard reminder in your calendar to pay your credit card on time each month, you will be certain to avoid any late payment fees.

However, there are some real threats on the internet which we need to take steps to avoid.

So what are the threats? Viruses, spyware are the main threats for putting your online transactions at risk.

So what can we do to minimise these threats? You must have a current antivirus program which is updated regularly. This is a must for online banking. However, most people are unaware that spyware isn’t always picked up by the antivirus program. We recommend that you check your system with Malaware Bytes Anti Spyware. This program is free to use and will scan and clean your computer.

Malaware Bytes Anti Spyware can be downloaded from PC Cleanup.

Another simple way to minimise risk is to have a second credit card exclusively for online purchases. This credit card should have a minimal credit limit. Another advantage of having a separate credit card for online use is that if you are affected by fraudulent activity, you still have your main credit card in use. There are a range of good low rate credit cards which would be ideal for a second credit card.

These are simple but effective steps to avoiding credit card fraud online.

In this electronic age it is important to talk to your children about the basics of how credit cards work.
Learning to understand these concepts at a basic level can help your child to become responsible with money at a young age. It is probably a very valuable lesson that can help children achieve financial success for their entire lives.

Some supermarkets now have a self checkout section. This is the perfect place to start the lesson. Get the children to help you scan your items and get them to watch as each price comes up. They can watch as you scan your credit card to pay for the items. Then explain to them that you receive a credit card bill each month that must be paid for out of your bank account.

Encourage children whilst shopping to compare prices for similar items and let them help make the best choice based on price, quality and quantity.

Including children in the shopping process can help them grasp the somewhat difficult concepts of electronic banking and credit card use. It will teach them that a credit card is not an endless supply of cash and that it must be paid for with money which we have to work for.

Reward credit cards have become very popular over recent years, offering anything from flights, to points which can be exchanged for all types of goods and services.

So when is a rewards credit card a bad choice?

Basically, most rewards credit cards tend to have a higher interest rate. If you are the type of person who pays off their balance in full each month, then this will not worry you. However, if you are the type of person who uses your credit card and racks up a balance, only to pay the minimum payment, then a rewards credit card may not be the smartest choice.

Whilst you will certainly be getting reward points for spending on your credit card, you will most likely be paying for the rewards in high interest payments.

To be sure you are benefiting from your rewards credit card, follow these simple steps.

Step 1: Check how much your interest charges have been over the last 12 month period.

Step 2: Check how many reward points you have earned over the last 12 months.

Step 3: Convert your reward points into a dollar value so you can compare with your interest charges.

Step 4: If your interest charges exceed the value of reward points (in dollar value), then you clearly would be better off switching your rewards credit card to a low rate credit card.

For your convenience, we have listed below the top offers for both rewards credit cards and low rate credit cards.

Reward Credit Cards	Low Rate Credit Cards
Commonwealth Bank Awards Credit Card More Details	St. George Vertigo Mastercard More Details

For more great reward credit cards click here – Reward Credit Cards

For more great low rate credit cards click here – Low Rate Credit Cards

Credit card comparison is an easy way to make sure you’re getting the best credit card deals.

There are two ways to join Simple Savings:

Option 1:
You can join simple savings as a free member and receive weekly email savings tips and much more.

Option 2:
For a joinging fee of only $49, you can access the Savings Vault.

“Your first visit to the Vault will blow you away. It is a staggering source of information, containing thousands of tips that will save you money and new tips are constantly being added. Finding what you want in the Vault is easy, thanks to our impressive facilities. Most Vault members learn enough to recoup their $47 joining fee in the first week alone – or even the first visit!”
www.simplesavings.com.au

So what are you waiting for. Either sign up for free membership or join the Savings Vault and start reducing your debt faster.

Our handy online credit card calculator can provide you with the help you need. It makes it clear to see where you are headed and the difference even $20 per week extra can make to your balance.

Check out your existing card and compare it with the best deals on the market. Credit card comparison is a great way to make sure you’re getting the best from your credit card. Remember, the people who are most sucessful at clearing their debts are the ones who set goals.

We use credit cards on a daily basis and it’s hard to imagine life without them now. Credit cards have provided such a convenience. Remember the days of going to the bank on Friday’s to make sure you have enough cash to see you through the weekend? What a smooth transition the credit card has made into our everyday lives. However, if not used wisely, credit card can be get some people into trouble, leading to huge debts and despair.

The following tips will provide you with the basic points for using your credit card to it’s full advantage and to minimise interest charges.

1) Need a Loan? Why not consider a low interest Credit Card
Some credit low rate credit cards now have such competitive interest rates, that it is worth considering instead of a personal loan. You also avoid the application hassles of a personal loan. If you have a good credit rating you will have no problem being approved for a good sized credit limit.

2) Pay your bills on time to establish a good credit rating
By avoiding late payments and staying within your credit limits, you will establish a good credit rating. This will enable you to apply for great credit card deals and will enable you to access credit in the future without a problem.

3) Protection for large purchases
When purchasing large items on your credit card, may are covered by warranty. Some credit card companies automatically extend the usual warranties when purchasing large items on their credit cards.

Most importantly, make sure that the credit cards you do have are right for you and your lifestyle. If you pay your balance off regularly each month you should be looking at a good rewards credit card. On the other hand if you have trouble keeping up with payments, a good low rate credit card it a smart choice to minimise interest charges.

If you are unsure, it is best to compare credit cards to find the best deals.