Using diligence not scissors to cut credit card debt.

Cutting up your credit card may not be the best answer to controlling your debts, according to a new article by the News Limited Network.

After all, there's no reason to throw away those hard earned rewards points and dispose of a credit cards convenience, when all that may be required is a bit of know how and some dicilpline. According to MyBudget's director Tammy May it may better to choose to stay on top of your credit card payments.

Many people run into trouble with their credit cards when a large expense arises, while others use their credit card simply to fund their lifestyles and make minimum repayments on their credit card.

"The biggest tip is to spend less than you earn," said Tammy May.

Head of consumer cards at ANZ, James Hutton advises that paying the balance in full each month is the best way to avoid interest and to even set up a direct debit if you are worried you will forget the repayments dates.

Cutting up a credit card is common among people who feel they are not disciplined enough to control their spending and make repayments, according to founder Alex Wilson.

"The biggest trap is not to be pulled in by marketing gimmicks. It's often better just to go for a low rate that will save you money in the long run," said Mr Hutton.

While a low rate credit card is good option for those wanting to reduce the risk of running into high interest repayments, those who already have a number of credit cards with debt on the balance may find that consolidating their debts on to a balance transfer credit card could dramatically reduce the interest repayments on their outstanding debts.

The type of balance transfer credit card that will best suite an individuals outstanding debts will depend on the amount owing on their credit cards and how much that person can commit towards making monthly repayments. Therefore the best way to get on top of credit card debt could be to begin with a credit card comparison to find the best credit cards to suit individual needs.

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