More than minimum card payments need to be made

Credit card borrowers have been reminded of the importance that they pay off as much money on their debt as soon as possible.

An article on Money-AU.com points out that only making the minimal monthly repayment is "an obvious mistake that consumers and borrowers make".

By doing so, the publication claims, people can find themselves shelling out far more money in interest charges than is necessary.

Sharat, writer of the article, claims: "Borrowers should endeavour to pay off the entire balance and if they cannot do so, than at least more than the minimum monthly payment."

Money-AU.com was also at pains to warn people against exceeding their credit limits, as doing so "invokes punitive charges" which are not only expensive but can also damage a consumers' financial report.

Earlier this month, David Bell, chief executive of the Australian Bankers Association, claimed that ensuring credit card bills are paid on time and bank accounts are not overdrawn can help consumers to avoid incurring costly fees.

Written by Ashley King.