When you have a credit card, you are given a credit limit and are allowed to spend up to that limit. The company that gives you the credit card (usually a bank) pays for your goods and services and then sends you a bill each month, which shows your purchases and minimum repayments. Credit cards are a flexible and convenient way to spend money however they are quite expensive due to the high rates of interest that are charged. Credit cards have gradually become the country’s favourite way to pay. At present, Australia’s 10 million credit card users spend about $4.50 of every $10 spent in the retail sector, including all shopping and most hospitality and leisure industries.
