Credit cards are useful, but you can get into a mess with your finances if you are not careful.
So here are some tips for managing your cards.
1. You should always try to pay off the full amount each month. That is not always possible. So try to pay off more than the minimum repayment amount.
2. You should know the interest rate you are paying. Some cards have interest rates of 18-20 percent.
3. Review your credit card limit. Rather than asking the bank to lift your credit limit you could ask the bank to lower your limit.
4. Try not to use the card to borrow cash. Banks charge high fees for this and they start charging interest from day one.
5. Shop around for the best deal. Credit cards offer a range of rates, fees and rewards. Pick the best one for you.
Watch the video for the full Talk Money segment.