Managing your credit cards
More than one card?
Most people probably need only one card. If you have more, you are likely to pay extra fees and charges. If you are in financial difficulties, more than one card may tempt you to use cash advances from one card to pay off another, causing even worse financial problems.
Paying off your balance
The best policy is to pay your balance in full each month.
If you can't manage this, try to clear your debt within a couple of months. If you find yourself borrowing up to your limit every time you make a payment, consider cancelling your card altogether, and taking out a personal loan at a lower interest rate until you pay off the debt.
What if you only pay the minimum off your credit each month?
Use our credit card calculator to check how long it may take you to pay off your credit card if you only pay the 'minumum payment'.
You can also talk to a financial counsellor.
Cash advances - beware!
Even if you have an ‘interest-free days’ card, you pay interest immediately for cash advances. Any payments you make will not repay the cash advance until all previous credit advances have been repaid in full. You will also lose the benefit of the interest free period until you clear your account of the cash advance.
Keep fees down
Manage your card carefully Try to avoid unwanted fees for exceeding your credit limit, failing to pay the minimum monthly payment on time, or allowing your payments to be dishonoured.
Low or no fee payment methods
Check the cheapest and easiest way to pay off your card. Phone and internet are almost always cheaper than paying over the counter. Some people may find it convenient to have their monthly payments deducted automatically by their institution from their transaction accounts; but this won’t suit you if you want to pay off the balance owed each month.
More information
Credit cards
Money management
FIDO Website: Printed 07/31/2010
