Change in behaviour 'can help to avoid credit card fees'

A change in approach to credit card expenditure could help borrowers avoid being stung by bank fees.

One way this could be done, claims David Bell, chief executive of the Australian Bankers Association, is by ensuring that all demands for payment on credit card bills are met on time.

"By using your own bank's ATMs, ensuring accounts are not overdrawn and that your credit card is paid on time, money can be saved," he states, adding that Aussies should also consider making the switch to no-frills credit card and bank accounts.

Such comments come after a report published by the Reserve Bank of Australia shows that banks across the country made more than $1 billion over the course of 2008 by charging people for using a different provider's cash machine, exceeding credit limits and being late with credit card repayments.

Meanwhile, Money-AU.com recently urged people to keep a close eye on their credit card habits to ensure that they avoid running up overwhelming amounts of debt.

Written by Kate Guthrie.