Low-limit credit cards 'can help to avoid overspending'

Low-limit credit cards may be ideal for those who are looking to reduce their reliance on such products but wish to keep a card with them for emergencies.

This is according to Loren Baxter, writing for Lifehacker, who outlined a number of ways people can avoid overspending on credit.

She advised such individuals to make sure the card "has a low limit of no more than $1,000" in order to minimise the risk of spending too much.

Those who are also concerned about the rates that apply to their credit card may wish to seek consumer advice on how to switch to a cheaper or more competitive product.

A growing number of Australians may be being more cautious with their credit cards and other financial products, as department store chain David Jones recently expressed its surprise that consumers are not spending more given the country's relatively solid economy, ABC reports.

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