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Should Australians learn more about credit card debt?

Should Australians learn more about credit card debt? 1

In recent years, banking in Australia opened up to more competition, yet many people remain loyal to very expensive card deals. Could they benefit from more education on the matter?

A new revolutionary attitude towards credit cards in Australia:

Up to 7 different courses were launched by Australia’s leading resource on credit cards. This was to help educate Australians on personal finances, especially with a view on credit card debt and opportunities to use cards wiser. The average person may think that all they need to do is to swipe a credit card to use it, so what would be the point of doing a course and getting educated on credit cards? As we will explain below, the nation is losing millions to the banks – and with better education, more money can flow back to the pockets of people, regardless of their financial status.

Make no mistake: Australians love credit cards – with up to $50 Billion in total card debt in the consumer market, it is a phenomenon that is trending, where $5.3 Billion is paid annually on interest alone! But now people are saying: wait a minute, we can do this for less, just like the Europeans and Americans do it.

How can credit cards be used wiser in Australia?

The resource deals with both education and helping Australians find better interest rates and benefits. According to the wealth of knowledge they share, a lot can be done: it is an eye-opener to the conventional card user who stuck with their bank for years, as we will explain:

The starting point is to understand that in modern days, loyalty is less rewarded by big corporations, where they actually incentivize promiscuous clients to stay on board. For this reason, smart consumers will do an annual comparison for better credit card deals – and switch to another provider if necessary. In fact, just like people reassess their mortgages, so they do with credit cards. In fact, here is a hint: A zero or low balance transfer alone, can cut the consumer some slack during difficult times, which is one of the most attractive reasons for switching card providers.

Moving onto benefits, is the next crucial step. For many Australians who love travel or who buy things in foreign currency, this is a huge opportunity. Many do not realize that as a nation, Australians pay around $1M per day in foreign fees alone. This is an astronomical saving that can be incurred – as the comparison platform helps you to find cards with zero foreign fees. Earning bonus points on purchases, frequent flyer miles when you travel a lot, with low interest in principle, are all benefits that need to be considered for an optimal credit card deal.

As Roland Bleyer, the CEO of Credit World Pty Ltd said: “Our first priority is to help the Australian consumer adjust to a new reality where they are more empowered to get a better deal. We are off course also happy to help facilitate a better match between banks and consumers, in a way that is more fair towards the consumer in an open market.”

Final scoop:

In an era of low interest rates, smart use of a credit cards is not so much about what you buy and how you swipe your card. It is all about selecting the best card provider – and knowing when it is time to switch to another provider. It is all about sussing out the market with useful tools that can quickly point you in the right direction. For years Americans and European consumers benefited from open markets. Now it is time for Australian consumers to embrace the same benefits and to say “hello world” the next time they go on a much-deserved spending spree abroad or at home.

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