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.

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.

• Check the balance transfer duration
  Most balance transfer offers last for 6 to 12 months, then revert back to the standard variable interest rate. Usually this rate is around 17 percent or higher. Make sure you are clear on what the current rate is to give you some idea as to what you will pay when the offer expires.
• Look out for hidden fees
  Some credit cards charge a fee for transferring balances. It is usually under 5 percent, and many have a limit of $25 to $50. Be sure to make enquiries to find out if any transfer fees apply.
• What does the 0% or low percent balance transfer rate cover?
  Many credit cards offer the balance transfer rates exclusively for balances transferred from other credit cards. What most people forget is that any new purchases will be charged at a higher interest rate. And most importantly, any payments recieved will first be applied to the transferred debt, meaning that any new purchases will be charged at a much higher rate and will continue to accrue interest. It is wise to apply for a balance transfer offer and have another low fee credit card to use for everyday purchases.
• Never miss a payment
  Avoid missing payments as this can cause your balance to revert to a higher interest rate. Make sure you are fully aware of the terms and conditions for late payments before you sign up.

As you can see, Balance transfer offers have a few hidden traps to be aware of. However, if you understand all the pitfalls and avoid them, then a good balance transfer credit card can help save you loads of money.