Credit
cards are a feature of modern living, we use them for everyday transactions
and
they can help make life easier. However they have to be repaid
and sometimes
that can be very difficult if we borrow more than we
can afford or our personal
financial situation changes.
They
allow the instant purchase of items but can cost us a lot more
than we
originally paid for that item if we take a long time to pay it back.
A credit card can be a debt burden if we can’t repay it.
Before you get or use a credit card you should:
Do a money plan or budget to assess your ability to pay and what your priorities are?
Consider whether you need or want it?
Shop around for the best deal?
Read the small print. What will it really cost? What risks are you taking?
Consider what happens if I can’t pay?
Get advice
For more information on what to do before you borrow go to
Before you Borrow
Useful Links on credit cards
Pitfalls with Direct Debits from Credit Cards Click here
When you
have a credit card you will often be offered an increase on your credit limit.
This may come at a time when you need to buy something or while you have a good
income.
It is important that before you accept an increase in your limit you
work out if you can afford it.
Disclaimer: The information contained on this web site
is of a general nature. It is intended as a guide and you must not rely
on the information contained on this website for legal purposes. If you
have a legal problem you must seek independent legal
advice from a qualified legal practitioner. To the extent permissible by
law, the Lismore and District Financial Counselling
Service Inc. disclaims all liability for anything contained on or
accessed via this site and any use you make of it.
Please note that some of the information on this website applies to residents of NSW
Australia only.
Credits: Web content produced with funding from the
Sugar Industry Reform Program.