Credit cards

Credit cards are an easy way to pay for things but they can also be very expensive if you don't pay off the balance in full every month. The longer you leave an unpaid credit card balance the more expensive it gets.

Here's how to get the most out of your credit card, and pay the least amount of interest:

• Find the best interest rate
• Check the fees and interest-free days
• Follow our 8 rules for credit cards

Find the best interest rate

Credit card interest rates can range from 12% to more than 20%.

It's important that you choose a credit card that suits how much you spend and your ability to repay. For example, if you tend not to pay off your card every month, you'll probably be better off with a lower interest rate.

Check the fees and interest-free days

Most credit cards offer interest-free days on purchases and charge an annual fee. Fees can range from nothing to $450 a year, and the number of interest-free days can range from 0 to 55.

If you think you're paying more than you should, ring your bank and ask for a better deal. If your bank can't offer the best deal consider changing cards.

Follow our 8 rules for credit cards

1. Shop around for the best deal
   Credit cards come with varying interest rates, fees, and rewards programmes. Take the time to select the credit card that best suits your circumstances.
2. Know the interest rate you're paying on your credit card
   Many credit cards charge around 20% interest. Do you know your card's current interest rate?
3. Review your credit card limit
   Base your credit card limit on how much you can afford, not how much you might spend. If you think you will have trouble paying it back, decrease your limit.
4. Pay the balance off in full each month
   You can only take advantage of interest-free days if you pay the balance in full at the end of the month. If you can't afford to pay the balance in full, at least try to pay more than the minimum repayment to save on interest costs.
5. Don't use your credit card to withdraw cash
   Don't withdraw cash from your credit card - banks charge high fees for this. Any cash you withdraw attracts a high interest rate from day one.
6. Be wary of accepting a higher limit or additional card
   If you let your bank raise your credit limit, or give you another credit card, you increase the risk that you'll end up paying lots of interest. Plus credit cards usually have an annual fee, so the more cards you have, the more fees you pay.
7. Avoid temptation
   If you can't resist the temptation to spend more than you can afford, leave your card at home. That will give you time to weigh up whether your purchase is essential or just nice to have.
8. If you're in trouble, talk to your bank
   If your credit card is getting out of control, talk to your bank about options for clearing your credit card debt. You may be able to take out a loan to pay off your credit card and pay off the loan at a lower interest rate.