Paying off debt should always be a priority, especially during times of uncertainty and national recession. After all if you don't have much debt you are far more likely to be able to cope with life's unexpected curve balls.
This second page about credit cards will help you understand them better so that you are the one in control and not your cards. Make paying off your debt and money management your number one goal.
So lets start by looking at the hidden costs of those ever so handy
The main way the lenders make their money from credit cards is the interest earned on outstanding balances. This is why they are always offering you higher and higher credit limits, hoping that you will spend up to that limit and have to pay it off slowly.
However there are a few other ways they make money from credit cards.
My credit card advice to avoid this is to set up a direct debit to pay off the minimum amount every month in time for the deadline. Follow this up with sending a cheque if you can, paying off debt little and often is a good idea, this way at least you would have made sure you won't ever be caught with a late payment fine.
By buying this protection with your card it will be costing you much more than if you cover yourself with a separate insurance policy.
However, we do pay for it indirectly, as the retailer has to increase their costs to cover this fee. Ah, there's no escape!
Here is a quick summary of things to think about when using a credit card. First put your frugal head on:
Seek credit card advice from your local banks and online to see the latest interest rates.
Note, if you do this, cut the card up and only use the account for paying off debt on the card itself, otherwise you will be charged interest on your new purchases and this can spiral.
But these cards are not good for those who need to borrow on their credit card as the interest will far out cost the rewards.
This credit card advice is designed to be used as a starting point for your discovery of the perfect credit card for you. Regulalry check offers made by the banks but also check with online comparison sites, which will have the most up to date rates available at the time.