Credit cards ''can ease the squeeze''

Consumers who are feeling the quease of the credit squeeze could find credit cards to be the key to easing their troubled minds, it has been asserted.

The Leader explains that different credit card providers have passed on interest rate cuts more quickly than others.

As such, transferring funds from one card to another could lower the amount being spent on interest each month.

However, the publication warns that savvy consumers should avoid low introductory rates if they are unable to clear their balance before the rate defaults to a higher long-term level of interest.

Similarly, cards with a higher long-term rate should be avoided as new purchases will incur this interest - and not the introductory offer - the article adds.

Other issues include any fixed charges or benefits, which may also vary from provider to provider and could be of more interest heading into 2009 than is usually the case.

Recent figures from the Australian National Retailers Association revealed that fewer Aussies are planning to use their Christmas bonuses to clear credit card debts than in previous years.