Credit Card Management Basics From Debt Consultants

One of the many advantages of working with a debt consultant in Victoria is the ability to have confidential, one-on-one discussions about your current spending and financial management habits. Often simple changes in the way you budget, use credit, and plan to handle debt can help you to avoid future problems and live a debt-free life.

A potentially challenging area that many consumers discuss with a debt consultant is the management of credit cards. For many people, moving from a credit card to a debit card for most purchases is a wise choice, but there is also a role for the credit cards when carefully managed.

To help you consider making small changes to your credit card use practice, here are some practical tips from the debt consultants at 4 Pillars in Victoria:

• Shop interest rates – different credit card companies offer various interest rates. Shop around for a low rate before applying for a card. Be care to check the rate after the introductory period as it can often increase substantially after the three or six month special offer.

• Budget use of the card – limit your use of the card to specific types of purchases. Do not use the card for everyday items as this can easily spiral into overuse and running up higher than normal grocery and luxury item purchases.

• Set spending notifications – most credit cards now allow the user to set notifications that arrive as a text message when the card is used. This is a helpful reminder to use the card only as budgeted and not for incidental or impulse types of purchases.

For help with credit card management and use, call us at 866-690-3328.