- Overseas shopping costs: Thinking of going to Sydney for your Christmas shopping? With some bank-issued credit (and debit) cards every purchase you make overseas attracts two fees: the bank's fee and a fee charged by the credit-card company.
Overseas purchase fees typically add up to 2 to 3 percent of the purchase price - so if you spend $2000 on presents you'll pay $40 to $60 in extra fees. - Part payment: If the bank doesn't get the full balance by the due date, it charges interest on the whole amount. One way to avoid this is to set up a direct debit to pay the outstanding amount in full each month - but make sure that you have enough in your bank to pay it. Raewyn Fox, the CEO of the NZ Federation of Family Budgeting Services, told us that they often heard of people getting hit with steep penalties for defaulting on their direct debits.
- Card-payment surcharges: Traders can charge you a higher price if you pay with a credit card - this practice is common among taxi and rental-car companies.
- Cash advances: Avoid making cash advances on your credit card. There's no interest-free period on cash - you pay the interest from day one.
More information
- Sorted - www.sorted.org.nz
- NZ Federation of Family Budgeting Services - www.familybudgeting.org.nz Freephone 0508 Budget
- Latest rates: credit cards - www.consumersaver.org.nz
More from consumer.org.nz
- Credit cards (best cards for flights, shopping vouchers and cash back)
Report by Krista Matheson
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