'Compare credit cards to suit spending habits'

Thursday 05 August 2010

Article by Mozo

Australian consumers should compare credit cards to find one that most suits their spending habits, it has been argued.

A financial guide by news.com.au notes that many Aussies end up paying more in interest than they need to by not having a card that matches their needs.

It broke down the different types of spenders into various categories including the “savvy shopper” – a consumer who uses their card frequently but always pays it off each month.

“They can search for a card with a long interest-free period,” said news.com.au.

Meanwhile the “average Jo” spender who uses their credit card frequently but never quite pays off the balance was advised to look for a “no frills-style” card with a low ongoing interest rate.

Others, like “the muddler” who gets caught in a “cashflow trap” and ends up building up large debts, were urged to stop using credit in the meantime and consider transferring their balance to a low-interest card.

A regular repayment schedule could then be set up to put the consumer back in control, the news website said.

According to official data, Aussie consumers still lack confidence, with retail sales growing by only 0.2 per cent in May.

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