Understand your credit card habits 'to save money'

One of the first steps to help stamp out paying needless bank fees is to understand your credit card habits, according to two writers.

Australians need to understand their credit card habits as part of a process to cut out paying needless bank fees, according to two writers.

News Limited Newspaper's David and Libby Koch believe that people should shop around for credit cards before they commit to a certain one, because it may not have the best interest rate.

Negotiating with your bank should not be something to avoid, because if you have an account with them and a home loan, for example, then you are in a position to bargain a little.

The Kochs said: "Ask where they can cut your fees to keep you happy."

The pair also think that people should choose a bank account that suits their needs the best, but also doesn't cost much.

"Often you can find appropriate products within your current bank so the first step should be your branch's information section," they said.

One idea is to use your own bank's ATM to withdraw money before you become short of cash and are forced to fork out up to $2 to withdraw your hard-earned dollar from a rival bank's machine.

There is now a message that pops up on the screen to inform customers that they will be charged a fee, or even withdrawing cash via the Eftpos system could be more beneficial because it is free.

Bank fees can cost Australians around $1,000 on average a year, which increases by eight per cent. A lot of this can be put down to laziness.

"We don't know about you, but we'd rather keep that $1,000 for ourselves than help the bank make another record profit," the Kochs said. "Change your banking habits, cut those bank fees and enjoy the rewards."

People in some areas of Brisbane may be intrigued by this advice after figures released earlier this month by Debt Mediators showed that there are more outer suburbs in the city in credit card or personal loan debt than the ones in elite areas, as reported in the Brisbane Times.

By Bret Clement