How Queenslanders can avoid putting rent on the Credit Card

Here’s how to stop essential bills from blowing out your Credit Card debt.

A growing number of Queenslanders are paying essential bills – even their rent – on credit cards.

It’s putting the country into billions of dollars of debt, but it doesn’t have to.

The average tenant in the city in South-East Queensland is paying $500 a week. That’s why a growing number of tenants are putting it on plastic.

Mozo’s Kirsty Lamont says: “Things like increasing power bills, child care, it’s putting household budgets under pressure.”

It’s not just rent. 1 in 6 of us are having to use our credit cards to pay everyday bills. It’s racked up a massive $51.2 billion in debt across the country.

Mozo’s Lamont says “the credit card should be a last resort”.

You can avoid using it, if you ask the experts. It’s about tracking your spending, and putting money aside ahead of time.

Financial educator Michelle House says: “That way you can choose that you’re happy with where that money is going.”

If you are left with no other option, the best advice is to use one card to manage all your payments.

Where possible pay in full and on time, and also make sure the interest rate is less than 10 per cent.

“That will significantly reduce your interest bill and help you save money,” says Lamont.

You can make paying on credit work to your advantage by choosing a card with a decent rewards program. They usually come with additional fees, so make sure you choose the one with the lowest charges to make it worth your while.

“You’ve got to pay it off every month,” says Michelle House, “that’s the most effective way and the only way to be ahead of a credit card.”

* In highlighting particular offers we are not making specific recommendations as this article does not cover all available products and may not compare all features relevant to you. Any advice provided is general in nature and does not take account of your needs, objectives or financial situation. Individuals should consider their own circumstances, and if in doubt seek appropriate advice, before proceeding.

9Saver Partner offers RateCity Low Rate Cards