While opting for a balance transfer deal could be an ideal way for those looking to compare credit cards to get their finances under control, doing so requires discipline.

A Money-AU.com article points out that upon switching to a zero per cent credit card those borrowers who exceed their available credit limit, are late in making a payment or who miss doing so altogether could find that their card provider will impose “harsh penalties” upon them.

This, the publication claims, is an attempt by credit card firms to generate revenue on balance transfer deals which generally do not tend to be profitable for them.

“Minor mistakes can sometimes have the effect of eliminating any benefit that the borrower receives from a zero per cent balance transfer and borrowers should be careful to avoid them,” Money-AU.com states.

As such, setting up a monthly direct debit was suggested as being the easiest way to avoid defaulting on payments.

In a recent Independent Weekly article, these consumers with a poor credit score were advised to make getting to grips with their credit card an area of priority.

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.

Many households are paying up to 30 per cent more in bank fees than necessary, according to the latest figures, much of which can be attributed to credit card debt.

The Australian Bankers’ Association’s (ABA) assertion follows a recent report from the Reserve Bank of Australia which assembled information regarding the amount paid out by households each year in bank fees, according to bankers.asn.au.

Chief executive of the ABA David Bell told the website: “The fees which could be avoided are $954 million-worth of exception fees.”

However, he added that households could save even more than the estimated 30 per cent by taking common sense steps including switching to low-cost accounts.

Further money-saving tips from Mr Bell included using your own bank’s ATM to avoid additional charges, not going overdrawn and paying credit card purchases off on time.

Overdraft charges and fees for unpaid credit card payments cost Australians approximately $1 billion each year, according to the Sydney Morning Herald.

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.

Cash savvy Australians benefiting from the latest round of government handouts are using the money to pay off their credit card debts, new figures have revealed.

According to the Reserve Bank of Australia’s (RBA) latest statistics, credit card repayments surged by 17.5 per cent in March 2009, which coincided with the second round of government cash payouts to 1.5 million Australians working in the retail industry.

Commonwealth Securities economist Savanth Sebastian is quoted by Perth Now as saying: “While there is no doubt that consumers spent significantly [in March], it seems a significant proportion of that stimulus was also used by households to pay down debt.”

The cash handouts formed part of a $42 billion stimulus package, the first round of which was paid out last December when a similar jump in credit card repayments was also recorded.

The RBA statistics also revealed that spending in March by a total of 2.2 per cent compared to February, according to the website.

RBA’s board recently expressed its dissatisfaction regarding a perceived ‘lack of progress’ regarding revisions to interchange fees regulation across the financial sector.