Aussies urged to pay off credit cards in full

With the financial crisis rumbling on, Aussie credit card customers should carefully consider how they use their plastic.

Chief financial officer for Community CPS Australia Wayne Matters tells Adelaide Now that people who are looking to reduce their spending during the economic downturn should consider leaving their plastic and credit cards at home, as if they do not have the means of being able to buy something then they cannot spend money.

However, recognising that this may not always be possible for people to do, Mr Matters points out that those who do carry credit cards with them should look to clear the money that they owe, in full, every month.

Mark Borg, financial planner for AMP, adds that credit card customers should be aware that cash advances on such a form of plastic can be a "financial trap", as interest is often accumulated straight away.

Those looking to get to grips with their credit cards and other areas of money management may also be interested to hear the publication's advice to refinance their more expensive debts, an area in which a zero per cent balance credit card could prove to be useful.

Meanwhile, Bernard Salt wrote in a recent piece for the Australian that the first step for those struggling with their credit card debts in getting back on a firm financial footing is to recognise the fact that they are in difficulty.

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