Pay off your credit card each week ‘and get free money’

People should make sure they pay off their  each month and get free money.This is the advice of Karina Barrymore, writing for the Herald Sun, who stated people should “join the nerd brigade” like her …

People should make sure they pay off their  each month and get free money.

This is the advice of Karina Barrymore, writing for the Herald Sun, who stated people should “join the nerd brigade” like her and save themselves a lot of hassle and expense by clearing their Aussie credit product regularly.

She said after making the mistake of not paying off her card once and being charged with a big interest payment she did not make the same mistake again.

“If you’re a nerd like me and pay off your card every month then the card company and bank don’t make any money from you. In effect, you get to use their money for free,” Ms Barrymore stated.

Those keen to put her advice into action might be interested to hear the government has proposed a ban on late fees as part of its credit and banking reforms, as well as more of an explanation about how interest is calculated.

It is also hoping to ensure repayments on all  take off the highest interest first, rather than the lowest to stop people in arrears getting even further into debt.

Ms Barrymore pointed out: “At the moment when someone makes a part repayment against their credit card bill, the banks offset it against the portion of debt that has the lowest interest rate.”

But she noted there will be strong opposition to these proposals from the banks and credit card companies.

Those looking for help budgeting might also be interested in comments from Mirsad Hasic, writing for Homepage Daily, who recommended people should make a list of income and outcome, such as household expenses, insurance and mortgage costs from the last three months.

And they can then divide both sections by three and work out where their money is going on average.

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