Taking care of your financial health...
For single mums, balancing the books at the end of every month can be a stressful process. Luckily, many low-interest rate credit cards are available to help you keep your finances in great shape. If managed responsibly, covering a few outgoings with your credit card can be an excellent way to build credit and stay out of debt. Check out our top four reasons for choosing to use a credit card.
Whilst many banks only offer very standard debit card packages with low overdrafts or impractical benefits, many credit cards will allow you to build up everything from cash bonuses to gift vouchers and travel cards.
A number of credit cards even allow you to collect points as you spend that can be redeemed in a variety of high street stores. As a result, it's always worth doing your research to find the best credit card for you.
Unlike debit cards, paying with a credit card is much more secure. Fraudulent payments made using a debit card will leave your account immediately and cause havoc whilst your bank tries to resolve the matter which could lead to missed scheduled payments. This could damage your credit score. However, when your credit card is used dishonestly, you simply notify your credit card provider and you will not be liable for any transactions during this period.
As you may have discovered, certain payments such as those made when renting a car, staying in a hotel room or travelling abroad are difficult to make with a debit card. Many companies often insist on deposits or holding amounts above the cost of the transaction. Some companies prefer payment by credit card as it is easier to charge customers for any damages incurred during your usage period.
If the low-interest period connected to your credit card is a few months from returning to a higher-than- average rate, the great thing about having a credit card is that you can move the debt to give yourself more time to repay the outstanding balance. With credit card companies competing for your business, often it is possible to move your debt on to balance transfer cards for a very small fee which will extend your repayment time for anything up to two years.
Disclaimer: The views of authors on our website are not necessarily representative of those views of our website. Articles contain only general information, correct at the date of publication. For advice regarding your own personal circumstances, always seek individual advice from a qualified professional. This article may not be reprinted, reproduced, or retransmitted in whole or in part without the express written consent of SingleMum.com.au. Please read the complete Singlemum.com.au Disclaimer here