Credit card users urged to set budgets

By Mozo ·

Credit card users in Australia are being urged to budget for the future in order to cope with interest rate rises.

Rising interest rates could also encourage people to compare credit cards in order to make sure they are on the best deal to suit their needs.

In an interview with news.com.au, Kristy Sheppard explained that credit card users should adopt the practice of assuming that interest rates will increase by at least one percentage point.

"With further rate rises possible in early 2011 it's important for borrowers to keep their seasonal spending under control so they're not in strife when reality bites. It's sensible to assume rates will be at least one percentage point higher tomorrow, so set today's budget accordingly," she told the news provider.

"If it takes two years for rates to move that far, then you've built up a fantastic financial buffer and provided yourself with peace of mind."

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