Save Money on Credit Card Payments

Posted by Jeekers On Saturday, February 5, 2011 0 comments
This is not a very good economy in which to be in serious debt which is why you need to be aware of the ways on how to cut corners such as saving money on credit card payments.

A lot of people do not realize that they actually spend thousands of dollars every year on credit card interest alone. Every time you charge something on your plastic, you are automatically signing up to pay for the interest as well.

Here are some things you can do to avoid paying more money to credit card companies:

• Do not use credit cards to pay your utilities i.e. power bills, water, gas, etc.
• Do not use credit cards on grocery or food items i.e. eating out
• Avoid charging expensive appliances that would augment your credit card balance
• Think twice before you sign up for an increase in your credit limit. The more money you think you can spend, the likelier it is that you would run a higher balance and pay larger interest.
• Do not be fooled with 0% interest rates because most credit card companies do not honor this agreement longer than 3 months after you start using the card.
• As much as possible, pay a lot more than the minimum monthly due. Credit card companies have figured out that the lower amount of money they require from card holders per month, the more they will use plastic because of the illusion of easy payments.
• Avoid making cash advances because the interest rates applied on such charges are at least twice as high as when you charge any other item on the card.
• Make payments on time to avoid any late fees. What most credit card holders do not pay much attention to is the fact that late fees will increase the overall balance which can lead to over the limit fees. These are the things that credit card companies will not tell you because they get a lot of revenue through these mishaps.
• Do not accept all credit card offers that come in the mail. Keep in mind that credit card companies will always be interested in your business because they know the attraction of purchasing power.
• Maintain no more than 3 credit cards especially if you are living on a modest income. Most people make the mistake of getting too many cards that they end up losing thousands of dollars every year on interest rates alone.

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