It S Easy To Stay In Debt Forever With Credit Cards

Category: Finance, Credit.

We do love our credit cards- to the tune of billions in extra fees, interest and other charges paid out each year, according the FSA.

Unexpected charges, hidden fees and shady tricks can increase the amount of money that you pay in interest fees, and keep you, penalties and charges in debt forever. Credit cards can cost you dearly if you re not careful. There are ways to get the best out of your credit cards and beat the charges, though. Compare credit cards that you re considering at comparison sites and only apply for those that offer low or no annual membership fees. Start by choosing the right credit cards when you apply for a credit card. Watch the APR when you compare credit cards, but look beyond it to find out how interest charges are calculated, how long your interest free period is and how many days leeway you have before your payment is judged to be late.

A large part of the high cost of using credit cards comes from the interest that you pay. How to Beat the Interest Charges. You can avoid ever paying a jot of interest by paying your account in full each month. In that case, make long term purchases on the credit card with the lowest interest rate and pay it off as quickly as you can. Of course, that s not always an option- after all, one of the reasons to use a credit card is to afford things you can t pay for all at once. Don t use that credit card for anything other than long- term purchases and pay more than the minimum every month.

It s easy to stay in debt forever with credit cards. How to Beat the Minimum Payment Trap. Just pay the minimum payment every month. That s over four years. If you have an account balance of �1000 on a 14% APR credit card, and pay the standard minimum balance of 5% each month, it will take you 52 months to clear the balance, and you ll pay �300 in interest. Pay twice the minimum- just another �25 per month- and you ll have the balance cleared in less than two years, and save �150 in interest charges. Pay close attention when you compare credit cards if you re looking for a balance transfer card.

How to Play the Balance Transfer Game Without Getting Beat. Look beyond the balance transfer rate to any requirements that you have to meet in order to keep that rate. That leaves the higher interest purchases to accumulate interest at 9% until the balance transfer is paid off. Be aware that the credit card company will apply your total payments to the lowest interest rate items on your account- so if you have an outstanding balance transfer at 9% interest and a new purchases balance at 9% , the credit card company will apply your payment to the balance transfer. Avoid the balance transfer trap by NOT using that credit card for new purchases. The only real way to beat cash advance charges is to find another way to borrow money if you need it. How to Beat Cash Advance Charges.

Unlike any other type of purchase or charge on your account, cash advances start accruing interest the moment you take out the advance. If you can avoid it, don t use your credit card to get cash loans. The interest charge is almost always on of the highest rates on your card, and it will be the last part of your balance that is paid.

Read more...

Every Credit Card Holder Gets A Monthly Statement By Mail - Finance and Credit:

Every credit card holder gets a monthly statement by mail. Contrary to popular perception all credit card statements are not the same, they vary according to the credit card issuer.

These Charges Will Appear On Your Monthly Credit Card Statement - Hallie Lobo about Finance and Credit:

The RFID Credit Card Since June 2005, all American Express issued Blue credit cards have been imbedded with an RFID( Radio Frequency Identification) transponder, in addition to the traditional credit card magnetic strip.

This Underlines The Importance Of Going For The Right Card - Carissa Mcbee about Finance and Credit:

Many people find themselves in a dilemma when it comes to choosing a credit card.