Fantastic Plastic card (credit card)

Other than bank overdrafts, the best known forms of credit are immediate credit and debit cards. The word "credit" has that warm and friendly connotations that it is often easy to forget that credit is debt. Credit cards can cause more havoc than the budget just about anything else, it is important to use or not use them at all.

As credit cards are relatively easy to acquire, the harder is likely to decide which of the many maps available at present more than 200 will give you the best deal. The most common are Visa and MasterCard, but only every financial institution offers its own version. In addition, Visa and MasterCard also offer "affinity cards" (or loyalty cards), and major retailers such as Myer-Grace Bros, David Jones, Sportsgirl and freedom of furniture have their own store cards.

Credit cards offer an interest-free period or interest charges immediately the purchase is made, but at a lower rate, some also charge an annual fee. Just as you need your bank account through its paces, we need some crunch numbers on your credit card. Your style will determine whether spending an interest-free period is useful or not. In 2002, the Reserve Bank announced its intention to force banks to reduce hidden costs from the processing of credit card transactions. These costs are generally passed on to the retailer, who in turn forwards them to you in the cost of goods. In theory, then prices will fall as the tax is reduced, and the fee must be disclosed in May, you can pay less by paying cash. But it is not good news, as some banks have responded by increasing the annual card fees to offset lower revenues. Ultimately, as usual, it pays to shop around for the best deal.

Finally, take care of your card. You May be responsible for all debts until you have a missing report, a thief can quickly undo all the good that your spending patterns of care were achieved. Know your credit card number and ring number if your card is stolen or missing, and to act quickly to report it. Do not disclose your PIN or Lard lend to anyone, and be wary of giving your card number over the phone, unless it is a reputable company.