If you have a credit card or want to get a new one then these suggestions are going to help you make the most of your time and money. In order to make the most of credit cards and credit in general.
Your credit card will let you purchase products and services now and pay for them later when you receive your monthly invoice, if the invoice is paid in full by the due date then you will not incur any interest charges and have used the credit card properly.
Where things become complicated is when you start carrying a balance on your credit card. The minute the balance is not paid in full whatever is remaining will be hit with interest rates that can range from 0.25 to 2% per month or more !
Why You Need To Get Away From The Credit Card Trap
As we mentioned earlier you could be charged anywhere from 0.25% to more than 2% per month on top of the balance outstanding, over time as this amount increases you would be paying interest on top of your interest this is commonly referred to as “compound interest”.
This compound interest is the primary reason people end up in serious debt and have a hard moving forward with their life. If you don’t have credit card debt then do everything in your power to stay away from it but if you are in debt these tips will help you get out of it as soon as possible. In order to get out of debt you need to look at how the banks keep us spending.
Ploys Used By The Banks To Make Us Spend More
The banks are not your friend, they are there to make money and will use highly sophisticated marketing ploys to motivate spending. Banks don’t want you to pay your balance in full every month otherwise they won’t make money so what they do is offer incentives to make you spend more than what you can pay back. These incentives like “cashback” or airmiles may seem like a great “perk” but you will regret it when you are forced to pay thousands of dollars on interest.
How To Get Out Of Credit Card Debt
What you need to do right now is start looking for credit cards with low balance transfer rates, most banks use this as a tool to lure customers over to them. Try to compare all of the different balance transfer opportunities to identify the one with the lowest rate.
By transferring these outstanding balances you are going to pay less interest which should help you get out of debt sooner but you need to take action now. With each passing day you are slipping further and further into debt. If you take action now you should be able to get out of credit card debt and hopefully stay out of it forever.
Credit cards are not inherently bad provided you use them properly. Based on this information you should be able to make the most of your credit cards.