We are increasingly making more of our purchases on credit. Excessive use of this facility can clearly lead to long term debt problems and cause a real headache but it needn't be the most expensive form of short-term borrowing. The credit card business is fiercly competitive but this offers the consumer a great choice, especially in the form of introductory offers. As a recent graduate you probably have a lot of expenditure - moving home, furnishing a house/flat etc. so despite earning a salary you could find yourself with a substantial credit card balance. In addition, it is estimated that in 2001 as many as 30% of graduating students had outstanding credit card debts. This means that you have an opportunity to take full advantage of some of the benefits.

Never had a credit card? Here are some simple explanations of jargon you might come across.

Myth:	Credit Cards are the most expensive form of debt. This is the line often bandied around even the most prestigious financial publications.
Fact:	Credit Cards can be extremely cheap compared to personal loans, often it is possible to pay 0% interest for a sustained period of time.
Example:	July 2001 Egg offers 6 months interest free credit on balances transferred before November 31 2000.
	July 2001 £2k was transferred from NatWest to Egg, thus gaining 6 months interest free.
	Mid November 2001 the £2k was transferred back to NatWest for a 10 day period hence gaining no interest.
	Late November 2001 £2k transferred back to Egg, balance now interest free until end May 2002.
Result:	Interest Free Credit For 11 months only 1 new card account opened.

Offers of this kind are always available DO NOT be afraid to switch your balances NEVER simply accept high rates of interest.

Where necessary if making a large purchase run 2 cards, purchase on first card, hold for interest free period and then transfer balance onto introductory offer as described above.

Warning: these introductory offers often lead into higher rates after the introductory period. Keep a check on interest payments and always have your next move lined up.

Remember the credit card companies seek to attract people to their cards through these offers and then assume you will stay. Play them at their own game. DON'T BE LOYAL, THEY WOULDN'T BE TO YOU.

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