Know your limits – How to control a credit card Author: Julie Centofanti We all know the benefits of using a credit card. A credit card can give you financial breathing space, especially when you have big expenses that your wage just won’t cover. But this freedom comes with a catch ... debt. One way to avoid debt is simply to remove the temptation. Cancel the card or cut it up. But this doesn’t work for everyone. Even if you have a credit card, you can still be organised, spend smart, be aware of your fees and ensure your balance is paid off each month. Do your research Shop around to find the best credit card that suits you. A simple google search can allow you to compare products and find a card that has a low interest rate or has features in line with your particular requirements. Remember, some companies may bump the limit on your card without your knowledge, so keep on top of this and always maintain the limit you are comfortable with. Set Limits We all have limits, we just need to stick to them. Whether you are shopping for groceries, Christmas presents or furniture for your new home, you can save by listing your items in advance and setting yourself a budget you can afford. The best advice with credit cards is to never, ever, spend beyond your means. Keep on top of your debts You can keep track of your credit card debt by repaying your balance as soon as possible. Making repayments at the end of the month can lead to overspending, missing the due date or even incurring late fees. If possible, pay off the total balance within the interest-free days to avoid interest. If this is not possible, try and pay off as much as you can to minimise the interest. A credit card gives you immense freedom, but use it wisely and control your debt.   General Advice Disclosure: This document contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser, AMP Financial Planning and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.