Check credit card limit before Christmas, expert advises

Monday 07 December 2009

Article by Mozo

A finance expert has warned of the dangers of overspending at Christmas.

Jonathan Tyler, senior lecturer at the University of Technology’s School of Accounting, told the Daily Telegraph that people should work out how much they can afford and then reduce their credit card limits to that amount before embarking upon any Christmas splurges.

"An iPod for $220 would be taking four yellow $50 notes out and one red $20 note and handing them over," he told the news provider. "Credit card money often does not seem as real as paper money."

Mr Tyler’s advice also highlights the importance of comparing credit cards. He said that in order to pay back a credit card on the due date it might be necessary to deposit money in a special account before spending it on credit.

Last week, the Australian Bureau of Statistics revealed that more people were using credit and debit cards in department stores as figures from October showed a 1.9 per cent increase in in-store sales.

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