Avoid Credit Card Debt this Christmas

19 November 2007

With the festive season fast approaching banks are gearing up for another windfall this Christmas as consumers use their credit cards to buy gifts for family and friends. Australian shoppers rack up an incredible $2.5 billion (avg) on their plastic in the lead up to Christmas.

Reserve Bank of Australia statistics show that the majority of credit card holders make an extra $213 in purchases in the lead up to Christmas. This means, that if the average family has 2.5 credit cards then they are spending $532 each Christmas without taking into account any cash purchases made.

One way to avoid credit card debt this Christmas while still enjoying the benefits of being able to make credit card purchases is to take advantage of the many credit card offers that are being made available by Australian banks and credit card companies.

Already there have been two credit cards offered to consumers with Christmas shopping in mind by the banks when promoting the cards through advertisements.

You can use your credit card to buy now and pay later in the same way as major stores such as Harvey Norman entice their customers to make purchases when they don't have the money to do so today.

You shouldn't be making credit card purchases on an existing credit card this store with some credit cards offering a six month interest free period on any Christmas shopping done this festive season.

Credit Card Tips for this Christmas

- Avoid cash advances; when you take out a cash advance instant loan then you will be charged interest immediately while credit card purchases of goods, have so many 'free days' of no credit charges attached to them, provided that you make you make full payment on your credit card statement when it is due.

- Try to pay off your outstanding debt each month. If this isn't possible then make sure that you at least make your minimum payment on time. Failure to do so results in fees and charges.

If you can't make your payment on time then maybe a second, low interest credit card, may be a helpful solution to ensure that you can make your monthly payment on time and avoid being charged for your purchases.

Many consumers use a second credit card as an emergency tool to make their monthly credit card payment when they are short of cash leading up to their payday due to an unexpected bill.

- Look into a balance transfer credit card account. Many of the Australian banks and other financial institutions offer zero or a low interest rate for a period of time between six months and the life of your existing credit card debt to gain your business.

This is a good product to take advantage of with your 'interest payments' now all going off your debt rather than to the bank. Aussie MasterCard is just one of several zero interest credit cards that are available with your new credit card not being charged any interest for the first six months when you transfer your balance over.

You can visit our Credit Card Comparison Chart to find the credit card offer that suits your needs.

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