While credit cards can be very convenient, they can also be a costly consumer product. Most consumers don’t know how expensive having a credit card can be. Every year a lot of big spending goes to credit card consumers, consumers throw away hundreds and thousands of dollars because of the use of credit cards. Anyone can save hundreds of dollars each year using these 3 credit card tips.
Never Pay the Minimum Payment
Your credit card company usually makes sure you know that there is a minimum payment. Even if you owe thousands of dollars, your minimum payment can seem extremely low, sometimes only 3% of your total balance. Remeber that purchase you at the clothing store for $50? well, over time that $50 will double. So to avoid paying interest only and never touching the principle, always pay more than just the minimum payment.
Transfer the Balance to a Low Interest Credit Card
Most people may receive a few credit card offers each month and most have some very enticing interest rate offers. For instance, many credit card offers will transfer your existing high interest rate credit card for free to the new card and allow you either zero percent interest for 6 months or a very low interest rate for a specific period of time. If you have a high balance in which you pay hundreds of dollars each year on interest payments, in many cases it is in your best interest to accept these offers and enjoy zero or low interest for the next 6 months to a year.
Use a Debit Card Instead of a Credit Card
there are times we use credit cards out of habit. But why use something that is so expensive when we don’t have to. We can easily pay for coffee or gas up the car with our debit card and not pay any interest. our Bank cards are just as convenient as credit cards and usually accepted everywhere credit is. Use your debit card to avoid high interest fees in the long run and you can save alot of money in interest fees.
