A very common cause of debt for people around Victoria and across the country is the incorrect use of credit. Credit cards are particularly problematic. Many of the issues that bring people to a 4 Pillars debt consultant are problems with credit card balances that are out of control.
There are some effective strategies a 4 Pillars debt consultant may recommend to help address these issues. Depending on the amount of debt and the length of time of the debt, informal agreements with creditors, Consumer proposals, or other options may be effective in eliminating the debt and avoiding the accumulation of more interest and penalties.
Choosing the Right Credit Cards
When starting out, or when rebuilding your credit after debt repayment, a 4 Pillars debt consultant can provide strategies for choosing the right credit cards. With so many options on the market, it is easy to make simple mistakes that end up costing you money over time.
Here are some important considerations for anyone in Victoria in selecting the best credit cards:
• Choose a major credit card – choosing a major credit card allows you to have one card for all types of purchases. This means managing the account easier.
• Avoid store credit cards – while the initial incentive to take out a store credit card may be attractive, these cards typically have much higher interest rates after the initial period. It is also easy to overuse these cards and to result in a balance carrying forward.
• Compare interest rates – take the time to compare interest rates both during the initial introductory period as well as after.
Shopping for credit cards can easily be done online, providing a simple way to compare and choose the best option.
