The credit card is one of the most popular inventions of recent times; promoting at least two key benefits: A boon to consumers as a means of payment and in turn, is a great boost to our economy.
But also credit cards have been exploited improperly, becoming the significant source of debt for many consumers. So to realize the true benefits of credit cards, consumers should be well informed about the proper use of credit cards.
Pay outstanding dues:
Failure to pay outstanding fees will only cause the debt to increase immeasurably since interest rates on credit card are considered among the highest as compared with other types of debt.
Transfer balances from one credit card to another high-interest credit card with a lower interest. If interest on credit card is too excessive, you should switch to other credit cards that offer 0% interest even by introduction. In this way, you can pay the debt of credit card gradually without incurring additional interest.
Cancel credit cards with high interest:
Assess the interest rate of each credit card that you have and cancel those that charged too much interest, even if they offer excellent rewards program, because in the end, the rewards are worthless compared with the additional interest incurred. Continue reading How to save money on credit cards: