Managing your credit card through the festive season

The festive season is fast approaching! It is easy to fall into the trap of charging everything to your credit card  especially as you get into the festive mood.

Here are some tips to help you manage your plastic with no regrets:

  1. Set yourself a festive budget

The key for not blowing the budget is to make it clear and realistic.  If you are putting every gift on your credit card, remember that you will be paying interest on these.  This could be up to as high as 20% on top of the price of the purchase.

Start with a list of family and friends you would like to give gifts to and allocate an amount to each gift.  You can also include items such as travel, accommodation, entertainment and food to the budget.  This will give you the total spend of your festive season.  We often don’t see how all small expenses can add up!

Leave a contingency amount in your budget for emergencies.  A budget also helps you see what you’re spending and eliminates over spending as well.

  1. Look online

Start looking online for purchases.  Not only will this help you price check with retailers but also you may be able to take advantage of any discounts or special offers.

Remember if you are ordering online to factor in shipping costs and read the fine print.

  1. Consider a balance transfer

Opting for a balance transfer credit card will allow you to pay no interest for a specified promotion period.  If you opt for a partial balance transfer, you could end juggling two or more credit cards.

Remember though that when the promotional period expires, it will revert to a standard purchase rate so make sure you read the fine print.

It is important to make sure you budget for extra repayments going forward so that you do not start paying more interest.

  1. Choose the right credit card for you

If you ‘re looking for a credit card ensure you choose one with features that work best for you.  Some things to keep in mind are:

  • Terms and conditions for the offer
  • Length of offer
  • Interest on purchases and balance transfers
  • Annual fees
  • Interest free days on purchases
  1. Think twice before increasing your credit card limit

Tempting to increase to help cope with the additional costs, but you will be paying more interest over a longer period.

We all want to make sure we start the New Year well and not be thinking, “How am I going to manage to pay back my Credit Card or Credit Cards back in a timely manner”

If this is you, please do not just pay the minimum payment and struggle through it, pick up the phone and call me. Let’s have a chat about the options and work out a good strategy.

Remember talking to a Finance Specialist like myself does not cost you, don’t be embarrassed, the smart ones do something about it, however the majority do little.

Remember I am always only a phone call away 0467 444 707.

Phil Farrugia – Finance Specialist – Mortgage and Finance Solutions

 

 

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Managing your credit card through the festive season