Financial help

Credit Cards

Credit cards can be a good idea, but only if you understand how to use them effectively!

How to use your credit card:

• Have only one credit card
  Remember, whatever you spend on your card you will have to pay back.

• Utilise interest-free period
  Most cards have an "interest-free" period. If you pay off your debt within the "interest-free" time period, you will incur no interest, however, if you do not pay off in time the interest may go back to the start of your debt period.

• Understand compound interest
  Most credit cards accumulate compound interest. Compound interest means that any interest your debt incurs is then subject to interest. So a debt of -$100 with a monthly interest of 1% will be at -$101 at the end of the first month. Know how much your interest rate is, how it works, and the other charges you can incur in using your credit card.

• Contact your credit provider immediately if you can not meet a payment.
  Explain your situation and negotiate a re-payment agreement you can meet. If you fail to do this they may commence legal action. If negotiations fail, and you're unsure of what to do seek professional help as soon as possible.

DISCLAIMER: The information provided in this information sheet is of a general nature only, and is not intended to be legal advice. There may be errors or inaccuracies or the information may not be completely up-to-date. Always check the information provided before relying on it. The information relates to consumer law in New South Wales, Australia