Consumers given tips on managing credit card debts

Organisation is crucial for those looking to get to grips with their credit cards.

In response to a reader letter, Justine Davies writes in the Money Mum blog for News.com.au that those struggling with their bills should attempt to ensure that all their expenses are paid from using their cash account, as otherwise they could find themselves running up further debts in order to pay for the essentials.

For those struggling with a large amount of repayments, she recommended people opt for a credit card which offers a "low ongoing interest rate".

However, consumers were urged to be conscious of special offers on credit card mailouts as the small print here can often hide the high rates of interest that is being charged.

The setting up of a regular repayment plan was also advised, regardless of whether borrowers choose to switch credit cards or not.

"Every six months or so, as you pay the debt down, review your interest rate and see whether there would be a cheaper option available to you," Ms Davies adds.

Meanwhile, a recent Sydney Morning Herald article reported that making use of credit card balance transfers can help borrowers to reduce the overall amount of money they owe.

However, such cards should be used with caution as they can often charge high rates of interest on new purchases.