Getting ahead with loans and cards

Mozo

Tuesday 11 November 2008

In the battle between credit cards and personal loans, cards are more popular, although personal loans offer lower interest rates.

Such is the claim of the Advertiser, which has advised Aussies that whichever they choose, they can still get a great deal if they do their homework.

It noted that as a nation, Australia has something of a love affair with cheap credit cards, with more than 12.3 million cards in use.

However, while they are not so popular, low interest personal loans often offer a better deal.

And in times of economic difficulty, money expert Darren James advised people to avoid debt tragedy by paying off the balance on credit cards by the end of the month, explaining that there are many benefits to doing so.

“You will be able to reduce the number of transactions you make per month and avoid bank fees [and] you will also get better returns from your card’s rewards program,” he told the paper.

In recent comments, prime minister Kevin Rudd has called for a review into rates charged by credit card firms, claiming that there is too much of a spread between cheap credit card deals and the high rate offers.ADNFCR-1761-ID-18870373-ADNFCR

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