There are almost 16 million credit cards in Australia and according to the Australian Securities and Investment Commission, 15% of Australian adults have problematic credit card debt. On top of this, the National Debt Helpline also reports credit card debt as the number one reason why people are in financial stress.

So, are credit cards good or evil?

The statistics are not good, but credit cards do have their pros and cons and there are situations where they can be good.

Whilst it’s great to accumulate all the rewards points and frequent flyer points, they do come with nasty interest rates and it can be very hard to get on top of the debt once it builds up.

So how can you make credit cards work for you so that they don’t cause you unnecessary stress?

Well it’s quite simple! You need to make sure that you can afford to pay the credit card balance in full each month before the due date. And if you do find this difficult, whenever you make large purchases on your credit card, make sure that you’re topping up your card with your savings so that you don’t get to the end of the month and find that you can’t meet your credit card repayment.

If you do this consistently, your credit cards will enable you to accumulate your reward points whilst not incurring any interest! This is the perfect situation. If you find this difficult, then cut up those cards and change your spending habits.

Would like to know more about how to reduce unwanted debt? Take a read of our blog!

Considering options like debt consolidation can also help manage your finances if you have multiple debts.

If you need help or would like to discuss your credit card debt, give us a call today.