According to a study from finder.com.au, 40% of Australians own one credit card, 19% own two credit cards and 8% own three or more. Unsurprisingly, cardholders with several cards were more likely to have bigger credit card debts than those with just one credit card. The study found that those with several cards carried on average $6,500 of credit card debt – more than double the national average.
However, credit cards are not necessarily a bad thing, says Prudential’s financial wellness advocate Tiffany Aliche. “It’s a myth that credit cards are innately bad,” she says. “Think of them instead like a tool, just like a hammer. You can pick that hammer up and build a house, or you can pick up that same hammer and destroy that same house. It depends entirely on the user.”
So, is there a method to the credit-card madness? We ask trusty financial experts for their top credit card dos and don’ts.