Spring Clean Your Credit Card Debt

With Christmas coming up, now is a good time to spring clean your finances and any credit card debt.

Qld Fair Trading Minister Margaret Keech urges consumers to take stock of their debt before it gets out-of-control.

"You can get your debt into order by budgeting and managing your money wisely," Mrs Keech said.

"The average credit card interest rate is 16%, which means for every $1000 you spend using credit you could be charged up to $160 a year in interest, depending how long you have the debt or.

"Paying off your credit card sooner means you will pay less interest."

Mrs Keech offered the following advice:

• Try to pay the balance in full each month, or at least pay more than the minimum monthly repayment.
  
• Ask your bank to reduce your credit limit.
  
• Use alternatives to credit cards such as cash or lay-by.
  
• Talk to your bank about renegotiating repayments.
  
• Do not use your card again until you have paid off the balance.

"If you must use credit cards, do so wisely and do not spend more than you can afford," she said.

For more information on controlling your credit grab a free copy of the Good Credit Guide at www.fairtrading.qld.gov.au or call 13 13 04.

www.fairtrading.qld.gov.au