Most people use credit cards nowadays, to avoid the inconvenience of having to handle large amounts of cash, to buy goods over the phone or internet or to spread the cost of a major purchase. But it is all too easy to incur heavy interest payments, or even to run up significant debts on credit card accounts. Our tips show you how to save money on your credit card account, and how to use your card to help manage your finances.

1. Shop around to find the right credit card for you – Try using an online card comparison tool and seek quotes on interest rates and fees from a range of providers including building societies, credit unions and on-line banking services.
2. Continue to research the latest deals – Transferring your balance to a card with a lower interest rate, or one offering a preferential balance transfer rate could save you lots of money, as long as the new card doesn’t revert to an even higher rate later on.
3. Choose the right card to suit your needs – If you pay off your outstanding balance every month, opt for a card with an interest-free period, but if you normally carry over debt a low-interest card will save you more money.
4. Investigate 'banking packages' – Conducting all your financial business through one bank might help you to secure favourable terms on a credit card, such as a discounted interest rates or no annual fees.
5. Negotiate the annual fee – By agreeing to spend a minimum annual amount on the card you might persuade your credit card provider to reduce or waive this fee. But only do this if you are sure you will spend the agreed amount anyway, otherwise it is false economy.
6. Opt for fixed-rate interest – The credit card company can only increase this if they give you 15 days notice, giving you the option of transferring your balance. Interest on a variable-rate card can be increased at any time, without prior notification.
7. Read the small print – By making sure you understand the terms and conditions of your credit card account you will avoid expensive surprises later on. Check the interest charged on purchases and cash advances, whether the interest rate is fixed or variable, annual fees, penalty charges, and the circumstances under which the interest rate can be changed.
8. Weigh up the costs and benefits of perks – Rewards such as air miles, hotel or shopping vouchers can come in useful, but you usually have to spend a lot on your card to benefit, and cards with reward programmes often have high interest rates.
9. Avoid expensive credit card protection insurance – If your card is stolen your credit card provider will normally reverse any unauthorised transactions as long as you report the theft promptly.
10. Take full advantage of interest-free credit to avoid bank fees – If your card has an interest-free period, you can effectively make purchases for the whole statement period plus the length of time you are given to make the payment, and then pay off your balance with one banking transaction.
11. Avoid taking cash advances – Using your card for cash is very expensive. Interest is charged immediately from the date the money is withdrawn, and some banks charge an additional fee, typically 1.5% of the withdrawal amount.
12. Don’t exceed your credit limit – Penalty fees can be high, typically from $5 to $25 depending on the provider.
13. Make repayments on time – Paying late will normally result in steep penalty fees. Consider paying by direct debit to ensure you don’t forget.
14. Pay off more than the minimum payment each month – By only paying the minimum it could take you a very long time to pay off your card balance, up to 15 years on a $2,000 balance.