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Latest NewsCalculate the cost first - it might not be such a good buy. Did you notice that we have a credit card calculator on our MakingCents website for you to use? No excuses now for not using it! There are so many calculators available you can choose one to suit you. If you use internet banking you will usually find one on the site. Before you use a credit card to buy something just check – can you repay the whole amount by the next due date? If not, add credit card interest to the price. It might not be such a good buy and the debt might be hanging around for a long time. The Australian Securities and Investments Commission (ASIC) also has a credit card calculator on its consumer website www.fido.asic.gov.au. If you enter your account balance, interest rate, repayment amount and the amount of credit you owe, it will calculate how long it will take you to pay off your credit card and how much interest you will pay over that period. For example: if you owed $2000 on a card with 16.5% interest rate and you were required to make a minimum payment of 2% of the balance, or $20 whichever is the greater, it will take over 16 years to repay the $2000 plus interest of over $2900 assuming you only pay the minimum amount (and never use the credit card again). For other tips about using credit wisely check out www.usecreditwisely.com.au |
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