Aussies 'should not have too many credit cards'

It is crucial that Aussies do not overextend themselves when it comes to credit cards.

Such is the assertion of Money-AU.com, which states that being in possessions of too many credit cards is "the most obvious mistake" that people can make with regards to such a product.

Claiming that having more credit cards than is necessary can leave borrowers to be tempted to spend money on things they do not need.

"Having too many credit cards is a temptation that consumers don't need, a lot of times consumers end up carrying more debt than they can afford largely because they don't know when to stop spending on credit," the publication claims.

And while a 0% balance transfer credit card can be an effective way for Aussies to tackle multiple debts they are advised not to hold too many of even these, as multiple credit card accounts may mean lenders become suspicious about whether a borrower is overextending themselves.

Meanwhile, David Bell, chief executive of the Australian Bankers Association, urged those looking to avoid being hit with costly fees to ensure that they keep up with demands for payment on credit cards and they constantly use their own bank's ATM.

Written by Mark Hornby.