MyMoney Online

How to Use Your Credit Card Effectively

Your credit card can be a great financial tool if you understand how it works and how to use it effectively. In the same breath it can be the single cause of your financial demise if you let it run away from you.

How credit cards differ from debit cards. The credit card differs from a debit card in that you pay an exorbitant rate of interest currently around 21% on the outstanding balance at the end of each month. The other main difference is that credit cards do not charge transaction costs at the point of sale, whereas, debit cards do.

Use your credit card wisely. Understanding that you pay a huge rate of interest on your credit card balance you should only spend up to an amount that you can comfortably afford to pay off in full at the end of each month. Bear in mind that your get up to 21 days to pay your credit card off from the statement date. So, effectively, you can have free use of cash for the whole of the month plus. You need to keep a careful eye on the due date and settle just before.

Squeeze out the extra. If you are really savvy you should keep the agreed amount that you decide to spend each month in your access bond earning some interest and then settle the credit card in full one or two days before the due date. If you don’t have an access bond then a money market account would be the next best thing as the interest rate is a little lower.

The bottom line is that you are keeping your money during each month working off interest and making use of free cash without transition fees. This does, however, need control and discipline.

Read More
Where to invest money you intend to leave to your kids

Where to invest money you intend to leave to your kids

The Money Show’s Bruce Whitfield interviews Galileo Capital Personal Financial Advisor Warren Ingram.

How to survive retrenchment

How to survive retrenchment

Your rights (and their responsibilities) upon retrenchment. Bruce Whitfield interviews Personal Financial Advisor Warren Ingram.

3 shares that'll bring home the bacon

3 shares that'll bring home the bacon

The Money Show’s Bruce Whitfield interviews Overberg Asset Management analyst Kirk Swart.

Convert petrol price savings into a 22% guaranteed return!!!

Convert petrol price savings into a 22% guaranteed return!!!

Financial Fitness coach Paul Roelofse says the recent drop in the oil price is an opportunity we should take full advantage of!

How to choose the right medical aid option

How to choose the right medical aid option

Financial fitness coach Paul Roelofse on how to go about choosing the correct medical aid option for you and your family.

All South Africans get credit amnesty on 1 April 2014

What exactly does this mean?

Popular articles
Ocean View protests Day 3: Police use water cannon to disperse crowd

Ocean View protests Day 3: Police use water cannon to disperse crowd

The community is demanding that the police act accordingly and remove gangsters from their community.

[LISTEN] Makhosi Khoza spills the beans on why she quit the ANC

[LISTEN] Makhosi Khoza spills the beans on why she quit the ANC

She says President Zuma was uncomfortable with her and her decisions which saw changes to the ANC and Motsoeneng ousted.

[Watch] Payday dance: Never a dull moment in Cape Town

[Watch] Payday dance: Never a dull moment in Cape Town

Even slow-moving traffic cannot dampen the mood in Cape Town because payday came early. Watch Capetonians celebrating payday.

KPMG International's meeting with Pravin Gordhan

KPMG International's meeting with Pravin Gordhan

The Money Show’s Bruce Whitfield interviews Pauli van Wyk, a journalist with Scorpio at Daily Maverick.

Ocean View activist speaks: We have had 20 murders in 2017 alone

Ocean View activist speaks: We have had 20 murders in 2017 alone

Sharone Daniels, a community activist in Cape Town's Ocean View says they need police intervention to end gang violence.

[WATCH] Day-Zero for water running out fast approaching?

[WATCH] Day-Zero for water running out fast approaching?

A government employee emailed John Maytham about what he or she believes is the real state of play with the Cape water crisis.