Are you paying credit card interest right now?
Credit card interest can be a serious pain. However, being a smart card user can make you enjoy all its benefits and avoid any potentials. Below are a few tips to help you out to avoid paying credit card interest:
Stay Away from Promo Credit Cards
Many credit card issuers use buzzwords and marketing campaigns just to lure you into signing up. Most of them also promise 0% interest, cash back, and other enticing perks.
These may be great short-term perks, but such cards are usually associated with very high-interest rates after the expiration of the promotional period. If ever you want to use any of these cards, see to it that you still pay your balance off even if interest doesn’t collect at the time.
Pick the Right Credit Card
It is a matter of personal decision as to which credit card you choose. But as stated above, don’t let good marketing and promotions sway you.
When looking for a credit card, always research and spend time learning about the best option for you. Try investing in a credit card with good perks instead of choosing a department store card or anything similar. It is also a good idea to talk to a financial advisor for you to come up with an educated decision.
Negotiate with the Issuer
Not a lot of people know this, but you can actually negotiate with the credit card issuer or bank to try lowering your monthly payment, interest rate, or even your balance. While this method might not be easy, it can be a great option you can consider if you have crippling monthly payments and there are no signs that you can pay your debt anytime soon. Call your card issuer if this is your current situation to talk about your payment options.
Make Timely Payments
One of the best ways to avoid paying credit card interest is actually as simple as paying off your balance. It may sound obvious yet there are many people who are unaware of the risks of having a high credit card balance. Ruining your credit score only marks the beginning of these risks.
Try to avoid using your card to buy something that you cannot really afford in cash in real life. This way, you can be sure that you can have your balance paid off once it is time to make your monthly payment. Don’t be like those people who live beyond their means by using their cards to buy stuff only to worry about paying the balance later on.
However, life can be very unpredictable, and emergencies can happen that you need to pay with your card. There is nothing wrong here as long as you don’t make it a bad habit.
Use a New Card to Pay the Balance
You can also transfer your card balance to your new credit card if you already have existing debt and you need some time for paying. It means that you will apply for a new card then use it to pay off your balance on the other. Just make sure that you pick a card with a lower interest rate or one with a time-interest free period to help you pay off your balance during this time.