--- title: Using a credit card responsibly description: explaining how a credit card works and some tips on how to use it responsibly image: https://www.beyonddebt.com.au/hubfs/money-card-business-pocket-51122.jpeg --- ![Top bar image](https://www.beyonddebt.com.au/hubfs/Assets%202019/Top%20bar%20image.jpg "Top bar image") ###### ![](https://www.beyonddebt.com.au/hubfs/Assets%202019/Tv.svg)Did you see us on TV? - [Click Here](https://www.beyonddebt.com.au/debt-help) ![Close](https://www.beyonddebt.com.au/hubfs/Assets%202019/Close.svg "Close") [![Logo](https://www.beyonddebt.com.au/hs-fs/hubfs/Assets%202019/Images/Beyond%20Debt%20black.png?width=560&height=128&name=Beyond%20Debt%20black.png "Logo")](https://www.beyonddebt.com.au) [![Logo](https://www.beyonddebt.com.au/hs-fs/hubfs/Assets%202019/Images/Beyond%20Debt%20white.png?width=560&height=128&name=Beyond%20Debt%20white.png "Logo")](https://www.beyonddebt.com.au) #### [![Phone](https://www.beyonddebt.com.au/hubfs/Assets%202019/Images/Button%20Copy.svg)**1300 284 091**](tel:1300%20284%20091) #### [![Phone](https://www.beyonddebt.com.au/hubfs/Assets%202019/Images/Button%20Copy.svg)![](https://www.beyonddebt.com.au/hubfs/Beyond%20Debt%20October2017/small-icon.svg)**1300 284 091**](tel:1300%20284%20091) [![Free Consultation](https://no-cache.hubspot.com/cta/default/2583772/02eddd09-66a0-4e61-9e59-63ae64bfd94a.png)](https://cta-redirect.hubspot.com/cta/redirect/2583772/02eddd09-66a0-4e61-9e59-63ae64bfd94a) #### [1300 284 091](tel:1300%20284%20091) - ##### [Eliminate Debt](https://www.beyonddebt.com.au/blog/topic/eliminate-debt) [## How to Get Out of Debt in 2026: The Australian's Step-by-Step Guide (And Free Budget Planner) ](https://www.beyonddebt.com.au/blog/take-control-of-your-debt) [Read Article](https://www.beyonddebt.com.au/blog/take-control-of-your-debt) - ###### [Personal Finance Basics](https://www.beyonddebt.com.au/blog/topic/personal-finance-basics) - ###### [Handle Money](https://www.beyonddebt.com.au/blog/topic/handle-money) # [Using a credit card responsibly](https://www.beyonddebt.com.au/blog/using-a-credit-card-responsibly) - ###### Kristin Perissinotto - ###### 20 Mar 2018 ###### LATEST ARTICLES - Personal Finance Basics - Handle Money [Back to blog](https://www.beyonddebt.com.au/blog) - Share - [**](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.beyonddebt.com.au%2Fblog%2Fusing-a-credit-card-responsibly) - [**](https://www.twitter.com/share?url=https%3A%2F%2Fwww.beyonddebt.com.au%2Fblog%2Fusing-a-credit-card-responsibly) - [**](http://www.linkedin.com/shareArticle?mini=true&url=https://www.beyonddebt.com.au/blog/using-a-credit-card-responsibly) There are many [pros](https://blog.beyonddebt.com.au/five-credit-card-pros) and cons of using a credit card, but if you do choose to use one, it is essential to use them responsibly and correctly. This can be done by having a sound understanding of how a credit card works and how it differs to a regular debit card. ![pexels-photo-462368-1](https://www.beyonddebt.com.au/hs-fs/hubfs/pexels-photo-462368-1.jpeg?width=320&name=pexels-photo-462368-1.jpeg) ## How does a credit card work? A bank will continually give you a line of credit to use for whatever you choose to purchase. From there, your end of the bargain is to pay your bills on time and in full. If payments are not made on time or in full, interest will begin to be accrued, making your bills more expensive. This means you will be paying more than what you spent using the credit card. Interest rates will depend on the bank and type of credit card you choose. If you do not pay the bill in full, your bank will give you the option to pay over time (including interest) as long as you make the minimum repayments by the due date. In this case, you will still be able to use the credit card as long as you do not exceed your credit limit. For example, if your credit limit was $5 000 and your owed balance $2 000, you will still have $3 000 of credit available to spend. While this may appear to be a positive aspect of a credit card, this can lead to you digging yourself into more and more debt over time. ![money-card-business-pocket-51122](https://www.beyonddebt.com.au/hs-fs/hubfs/money-card-business-pocket-51122.jpeg?width=320&name=money-card-business-pocket-51122.jpeg) ## How to use a credit card responsibly There are many [pros](https://blog.beyonddebt.com.au/five-credit-card-pros) to using a credit card, and one is that you have funds available to you, no matter what your bank account states. But getting into a pattern of consistently spending more than you can afford could ultimately lead to a mountain of debt that you cannot pay off. Using a credit card responsibly means paying off the full balance before or by the due date, every month. Avoid spending above your means, or buying for the sake of buying. Alternatively, you may like to have a credit card handy for emergencies only and stick to using your debit card or cash day to day. Remember to spend responsibly, and always do your research before making large financial decisions, and [contact us](https://www.beyonddebt.com.au/contact-us/?_ga=2.238071108.530809793.1521354778-899269527.1515647800) if you need help paying down a credit card debt.       ###### Ready to become debt free? #### Take the first step to a debt free future [Ready to become debt free?](https://info.beyonddebt.com.au/request-a-consultation) ### You might find these interesting - ##### [Personal Finance Basics](https://www.beyonddebt.com.au/blog/topic/personal-finance-basics) ## [The Worst Degrees to Study](https://www.beyonddebt.com.au/blog/the-worst-degrees-to-study) - ###### Ben Paris - ###### 06 Jul 2022 - ##### [Personal Finance Basics](https://www.beyonddebt.com.au/blog/topic/personal-finance-basics) ## [Couple’s Money – How to Budget Together](https://www.beyonddebt.com.au/blog/couples-money-how-to-budget-together) - ###### Ben Paris - ###### 06 Jul 2022 - ##### [Personal Finance Basics](https://www.beyonddebt.com.au/blog/topic/personal-finance-basics) ## [The 10 Cheapest Places to live in Australia](https://www.beyonddebt.com.au/blog/the-10-cheapest-places-to-live-in-australia) - ###### Ben Paris - ###### 01 Jun 2022 - [Personal Finance Basics (126)](https://www.beyonddebt.com.au/blog/tag/personal-finance-basics) - [Handle Money (100)](https://www.beyonddebt.com.au/blog/tag/handle-money) - [Everyday Expenses (61)](https://www.beyonddebt.com.au/blog/tag/everyday-expenses) - [Affordable Living (50)](https://www.beyonddebt.com.au/blog/tag/affordable-living) - [Build Savings (33)](https://www.beyonddebt.com.au/blog/tag/build-savings) ## Ready to become debt free? #### Speak with one of our specialists to start your future [![About Beyond Debt](https://no-cache.hubspot.com/cta/default/2583772/e771166e-724a-4461-9ee9-fd819c4c0fe2.png)](https://cta-redirect.hubspot.com/cta/redirect/2583772/e771166e-724a-4461-9ee9-fd819c4c0fe2) [![Get Help](https://no-cache.hubspot.com/cta/default/2583772/8ac6a951-8425-44d9-91d4-0928fca0084e.png)](https://cta-redirect.hubspot.com/cta/redirect/2583772/8ac6a951-8425-44d9-91d4-0928fca0084e) #### [![Phone](https://www.beyonddebt.com.au/hubfs/Assets%202019/Images/Button%20Copy.svg)![](https://www.beyonddebt.com.au/hubfs/Beyond%20Debt%20October2017/small-icon.svg)**1300 284 091**](tel:1300%20284%20091) - ![Family-Owned-transparent-300x158](https://www.beyonddebt.com.au/hs-fs/hubfs/Assets%202019/Images/Family-Owned-transparent-300x158.png?width=115&name=Family-Owned-transparent-300x158.png) - ![pipa_logo_transparent_300w_100h](https://www.beyonddebt.com.au/hs-fs/hubfs/Assets%202019/Images/pipa_logo_transparent_300w_100h.png?width=151&name=pipa_logo_transparent_300w_100h.png) - ![Feefo](https://www.beyonddebt.com.au/hs-fs/hubfs/Feefo.png?width=115&name=Feefo.png) ##### Debt Help ##### Company ##### Resources Beyond Debt is a trading name of DCS Group Aust Pty Ltd. 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