People are spending an increasing amount of money on their credit cards, new figures show.

Research carried out by the Reserve Bank of Australia (RBA) reveals that some $17.1 billion was spent on cards over the course of February, an increase from the $16.6 billion recorded for January.

And with such an increase in expenditure, now could be a good time for Aussies to search out cheap credit cards to ensure they are getting the best possible deal on their borrowing, the Australian Associated Press reports.

Furthermore, the RBA reveals that Aussies are not putting as much money towards paying back their debts, as repayments in February stood at $16.8 billion, compared to $18.1 billion in the preceding month.

In December, a record $21.5 billion was repaid.

Overall, the Reserve Bank indicates that outstanding balances on credit cards totalled a record $45.4 billion.

And in figures released by the Australian Bureau of Statistics, a 0.41 per cent increase in new home loans over the course of February was revealed, despite the RBA’s attempts to encourage more people to get on the housing ladder.

Although the official base rate set by the Reserve Bank of Australia and other central banks across the world have fallen in recent months, credit card borrowers should not assume that the rate they are being charged on their card will also fall.

Indeed, Money-AU.com reveals that despite a series of interest rate cuts by national banks, numerous lenders have actually been taking steps to increase the amount they charge their credit card customers.

To avoid being a victim of such rises, the publication advises consumers to keep an eye on their credit card statements.

However, should they discover they are being charged an increasing amount of interest than they should look to swap products, while taking the time to compare credit cards could help them to find a competitive deal.

It was also suggested that for complete peace of mind when taking out a credit card, people should select a product providing a fixed rate of interest.

Earlier this week, the publication advised those switching to a zero per cent credit card deal to ensure they keep up their repayments, otherwise they could find they are the victim of “harsh penalties”.

Customers considering turning to plastic money must compare credit cards to secure the best deal, it has been claimed.

One of the top priorities when seeking a new credit card is to shop around for the best deal and take note of the interest rate charged, particularly from unsolicited offers, according to money-au.com.

Meanwhile, borrowers who are struggling financially are unlikely to get the best rates available, but should not settle for anything the first rate they are offered when they could compare credit cards for a cheaper deal.

Other common mistakes made by those in the market for a new credit card include having too many credit cards, resulting in unnecessary temptation to flash plastic, and misunderstanding introductory offers, according to the site.

Failing to read the fine print of credit card contracts is also listed as an oft-repeated error, while paying attention to eye-catching bonus features over fees and interest charges is another top mistake.

Last year Australian banks charged Australian citizens over $1 billion in charges for overdrawn accounts and unpaid credit card fees, according to the Sydney Morning Herald.

A chief finance officer in a state department in Pilbara has been charged with theft offences after using a government credit card to make personal purchases.

Perth Now reports that the officer, who has not been named, allegedly used the credit card to make numerous personal purchases, racking up bills for paintings, new clothes, a new computer, kitchen knives and a television.

The case was brought after an investigation carried out by the Corruption and Crime Commission.

Nick Anticich, director of operations at the commission, said that the state agency had alerted them to suspected misconduct.

“The chief finance officer, whose role is to monitor financial controls, is alleged to have abused the trust and responsibility placed in them,” he said.

The case follows the launch of an inquiry against former Sydney Ferries chief executive Geoffrey Smith, who was sacked from his position after it emerged he had racked up a huge credit card bill for personal items on the company account.

According to the AAP, the former executive spent over $237,000 on private school fees, alcohol, club memberships and other personal expenses.

Aussies heading off on holiday in the coming months need to wise up to the risks of using their credit card overseas.

While credit cards are often touted as a safer alternative to carrying cash on holiday, it is important to remember that in certain circumstances, withdrawing cash and making payments overseas can have costly repercussions.

The Age reports that many travellers have touched down on Aussie turf to discover that they have been charged repeatedly for taking out money at foreign ATMs. Gold Coast resident Shannon Murphy said she had to stump up $150 in transaction fees after her holiday.

“I was aware that there would be bank charges but I was shocked at how high they were and how quickly they add up.

Read full article…