If you can’t live without the plastic, and let’s face it, modern society is making it harder for us to get by without at least one credit card, then it is important to make sure you have the right credit card for your needs.
Credit cards are essential for many people who travel for business, and of course make good sense (and peace of mind) for emergency situations and as a convenience for online shopping and instead of carrying piles of cash.

Here are five tips for choosing the right credit card to avoid potential credit card debt.

1. If you are the credit card user that always has sufficient cash in the bank to cover your credit transactions, find a credit card with the best rewards. Check out frequent flyer points options available. Without putting yourself in debt, set your direct debits up to your credit card to make the most of your points.
2. A low rate interest credit card that comes without any frills is the best option for those that always seem to have a residual balance at the end of the month.
3. As well as comparing interest rates, it pays to check out your credit card’s annual fee. Remember, this fee is simply whacked on top of you bill one month each year for you to pay.
4. When searching for a new credit card, know what fees and charges you could potentially be slammed for late payment. Here we are not just talking about nasty interest rates, but also other bank fees and surcharges you will be hit with. Read the fine print before you sign up.
5. Consider the issue of merchant fees. Some credit cards, particularly American Express and Diners cards, have higher merchant fees. It is becoming more common for these fees to be passed on our Australian consumers. Are you willing to cope these fees?