Pay more than the minimum, credit card users told

Credit card holders can minimise interest by repaying more than the minimum each month.

Credit card holders who want to minimise their interest payments but cannot afford to clear their entire balance should at least repay more than the recommended minimum each month.

This is if a new article in the Sydney Morning Herald is anything to go by; it states that people who accumulate credit balances face bigger costs these days.

Anyone who "falls into the trap" of only paying off the minimum each month can take over five years to reach zero and end up paying massive amounts of interest, it added. A card fee could add to this if any of the payments are late.

One of the other recommendations given by the newspaper was not to continue using a card that carries a large interest rate - especially if a continuous balance is held. A balance transfer to another car may be a wise idea in this situation.

But beware of so-called rewards or loyalty schemes, it warned.

The comments come after two industry experts said that couples need to have corresponding ideas about how to manage credit.

David and Libby Koch told News Limited Newspapers that this can help to reduce the risk of financial disagreements.

By Mark Hornby