Most Australians use their credit cards every single day.
In fact, many cannot possibly imagine life without their personal credit card by their side.
Since a large majority of people are utilizing cards in their every day lives, there is a high chance that some cardholders will eventually develop bad credit habits.
When one is not careful, bad credit habits often lead to massive debt and even bankruptcy.
Fortunately, you can turn the tables and avoid developing bad credit habits.
The solution to this problem is simple; you just need to know how to handle your finances well.
First, you need to know the most common bad credit habits to avoid and determine how to change them: Late Payments The bad thing about late payment is the incurred charges that come with it.
Habitually making late payments will end up with a lump sum of money, in some cases, the cost of the incurred charges costs more than the actual item purchased! So how can you make sure to pay your bills on time? Consider setting up a direct transfer to your credit cards each month from your transaction accounts.
Since you already know when the payment is due, you can create an average payment amount from your previous statements.
Direct transfers are very easy to set up and often, they can be done online through internet banking.
If you are unsure whether your personal credit card have this feature, it is best to call customer service and ask.
Exceeding The Limit Another bad credit habit that can result in avoidable charges is when you exceed your credit limit.
Habitually exceeding the credit limit not only results in added charges, it can also have a negative effect on your credit report.
Bad credit reports means having great difficulty obtaining loans in the future.
Something as simple as checking your available credit regularly will help you avoid exceeding the limit and paying additional charges.
Fortunately, many card companies allow balance checking via telephone or internet.
Another tip is, if you know that you are already close to exceeding your credit line; do not use your credit cards at all until you are able to pay off your balance.
Not Paying All Balance Each Month Dragging your debt for months is always a bad idea.
Most people think that making minimum payment is a good idea but that could not be farther from the truth.
You will end up locked in debt for many months or in some cases, years! If you can afford to pay more than just the minimum amount of payment then do so otherwise you are likely to pay a lump sum of money on interest rates.
Overusing Your Personal Credit Card If you cannot afford to pay off your mounting balance, then do not use your card at all.
If you do not have the will to use your card, remove it from your wallet and put it in safekeeping until you are able to pay off all your credit debt.
In fact, many cannot possibly imagine life without their personal credit card by their side.
Since a large majority of people are utilizing cards in their every day lives, there is a high chance that some cardholders will eventually develop bad credit habits.
When one is not careful, bad credit habits often lead to massive debt and even bankruptcy.
Fortunately, you can turn the tables and avoid developing bad credit habits.
The solution to this problem is simple; you just need to know how to handle your finances well.
First, you need to know the most common bad credit habits to avoid and determine how to change them: Late Payments The bad thing about late payment is the incurred charges that come with it.
Habitually making late payments will end up with a lump sum of money, in some cases, the cost of the incurred charges costs more than the actual item purchased! So how can you make sure to pay your bills on time? Consider setting up a direct transfer to your credit cards each month from your transaction accounts.
Since you already know when the payment is due, you can create an average payment amount from your previous statements.
Direct transfers are very easy to set up and often, they can be done online through internet banking.
If you are unsure whether your personal credit card have this feature, it is best to call customer service and ask.
Exceeding The Limit Another bad credit habit that can result in avoidable charges is when you exceed your credit limit.
Habitually exceeding the credit limit not only results in added charges, it can also have a negative effect on your credit report.
Bad credit reports means having great difficulty obtaining loans in the future.
Something as simple as checking your available credit regularly will help you avoid exceeding the limit and paying additional charges.
Fortunately, many card companies allow balance checking via telephone or internet.
Another tip is, if you know that you are already close to exceeding your credit line; do not use your credit cards at all until you are able to pay off your balance.
Not Paying All Balance Each Month Dragging your debt for months is always a bad idea.
Most people think that making minimum payment is a good idea but that could not be farther from the truth.
You will end up locked in debt for many months or in some cases, years! If you can afford to pay more than just the minimum amount of payment then do so otherwise you are likely to pay a lump sum of money on interest rates.
Overusing Your Personal Credit Card If you cannot afford to pay off your mounting balance, then do not use your card at all.
If you do not have the will to use your card, remove it from your wallet and put it in safekeeping until you are able to pay off all your credit debt.