BB Fact Sheets – Money – Credit Cards

Managing your Credit Cards

• Credit cards can be very useful if managed well, if not then they can be disarsterous for your financial situation.

• Some people use credit cards very effectively as a means to buy things that they need now, and pay off over the next month before the interest is calculated.

• Credit cards are also very useful for online transactions, where a normal savings account will not allow you to buy goods.

• Debit cards are becoming more popular as you are only drawing on your own money and not a line of credit.

Baby Boomers and Credit Cards

• Baby Boomers have grown up with the concept of consumer credit, but being able to deal with the consequences of credit cards really depends on the individual.

• Baby Boomers have been used to credit cards and as they are likely to remain as one of the main forms of transaction, learning to manage them is the important issue. In cases where people may not always be in the workforce, learning to keep levels of debt within managable levels will be a key issue for Baby Boomers who are used to spending on credit.

Top Credit Card Tips

• Look at your spending, and see how much of it you actually need, rather than simply want. Are there any purchases that you can save up for, rather than putting them on a credit card? Pull out that jar and every time you don't buy a coffee out put in $3. It will all add up!

• If you have a credit card debt, pay back more than the minimum repayments in order to get rid of the loan faster, even if it is $20, and become free from the card! You can set up a direct debit online from your bank account that will pay set amounts off each month.

• If you're looking at getting a credit card, consider your reasons for getting one. If online purchasing is the answer you're giving, get a debit card instead – it will prevent you from spending money that you don't have.

• If you're going to use a credit card, use it wisely! Use it for purchases that you can pay back in full within the month to prevent interest piling up.

• Make sure you pick the correct credit card for you – low fees are not the only thing you should be looking for – annual fees, interest-free purchase deals. Make sure they don’t revert to a higher interest rate after 12 months.

• If you are experiencing financial difficulty, you may choose to use financial counseling services which are available in every State and Territory and provide a free, independent and confidential service.

• Talk to your Bank about your credit card[s] and what you can do to decrease your debt.

Credit Ombudsman Service                                          - 1800 138 422

Financial Ombudsman Service                                      - 1300 780 808

NSW - Consumer Credit Legal Centre                           - 1800 808 488

QLD - Financial Counselling Service                            - 07 3321 3192

VIC - Financial & Consumer Rights Council                  - 03 9663 2000

WA - Consumer Credit Legal Service                           - 08 9221 7066

SA - Community Legal Service                                     - 08 8362 1199

TAS - Anglicare Financial Counselling Service             - 03 6234 3510

NT Anglicare Top End Financial Counselling Service  - 08 8985 0000

ACT - Care Financial Counselling Service                 - 02 6257 1788

Centrelink Financial Information Services                   - 13 23 00

ASIC information line                                                  - 1300 300 630

Australia - http://www.fido.gov.au/fido/fido.nsf#

               - http://www.understandingmoney.gov.au/content/default.aspx

               - http://www.asic.gov.au

Commonwealth Financial Counselling - http://www.fahcsia.gov.au/sa/families/cfcp-cfcp_directory.aspx

Financial Counselling Services in Australia - http://www.fido.gov.au/Financial+counselling

Centrelink Financial Counselling Service - http://www.centrelink.gov.au/internet.nsf/services/

List of Personal support services - http://www.fido.gov.au/byHeadline/Personal%20support

Commonwealth - Rural financial counselling scheme - http://www.daff.gov.au/agriculture-food/drought/rfcs

Disclaimer: The information contained in this section should not be used for individual financial advice. Please seek independent financial advice if you have concerns or specific questions relating to your money.

This article was created by Jennifer Lawrance for babyboomers.com.au - Australia's website for Baby Boomers. Sources include ASIC and the Federal Government. Babyboomers.com.au is an online resource to help people find information and services on health, money, travel and recreation