• Set your credit limit at a level you can afford to repay within the interest free period.
• Know the due date of your payment and pay on time.
• Always pay more than the minimum due on your credit card to help reduce your balance and your interest charges.
• Avoid interest charges altogether by paying your credit card balance in full each month, preferably by direct debit from your bank account.
• Use online services to keep track of your card spending so you can keep within your limit.
• Avoid taking cash advances or paying utility bills with your card as they usually incur additional fees.
• Regularly review your monthly statements to ensure that there are no errors or unauthorised charges on your account.
• Use your card only for essential purchases and not for luxuries.

Consider having two cards – one with a low limit for everyday purchases which you pay off in full each month and another for emergency or large purchases.

It pays to shop around for the right type of card for you with a fee structure that suits your needs. For example, some low interest rate cards have higher monthly fees and are more suitable for those with high credit balances. If you need a card only to make online or telephone purchases, consider using a debit card. Your bank account will be debited straight away and you will therefore pay no interest.

1. Paying only the minimum balance. You will lose the interest free period on new purchases and it will take a long time to repay your debt.
2. Having too many cards. It is much harder to keep track of your total debt when you have multiple cards.
3. Using cards for non-essentials. Getting into debt to buy luxury goods will set you back financially.
4. Not getting the best deal. There are big differences between cards when it comes to interest rates and features. Choose the card that is right for you.
5. Forgetting to pay or paying late. You will add to your interest bill and your credit rating may be affected.
6. Having too high a credit limit. The higher your limit, the more you may be tempted to spend and the harder it will be to pay off your bill each month
7. Being tempted with low interest offers. Look at the fine print before you accepting an offer to get a new card at a low interest rate.
8. Refinancing without reducing your limit. Increasing your mortgage to repay your card will reduce your interest if you are maxed out, but only if you stop spending on your card.

To use your credit card to advantage, set the limit to a level that you can afford to pay off every month by direct debit. For emergencies, have a second card with a higher limit which you keep hidden in a safe place (not your wallet or purse!).