Expert compares credit card solutions

Wednesday 03 March 2010

Article by Mozo

A finance specialist has offered consumers advice as to whether they should pay off their credit cards with the highest balance first or those with a higher rate.

According to Lisa Hoover, having a large balance on high-rate or low-rate credit cards is still going to burn a hole in the wallet each month, but those with high interest on their plastic may also see larger bills.

Writing for lifehacker.com.au, the expert claimed that it is more important to take swift action to reduce debts regardless of the situation, explaining that it is better to pay off one card in full than upping the repayments on all cards.

"While nothing beats talking to a financial advisor face to face to deal with major credit issues, if you’re talking about relatively small balances on a couple of cards, the grab-a-random-card-and-pay-it tack is probably just fine," she said.

The Australian Competition and Consumer Commission recently warned that credit card users need to be cautious when using the web, as Australians have lost around $70 million to online scams in the past year.

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