Tag Archives: credit cards

How to avoid credit card fees with examples:

When you receive your monthly statements there is a great temptation to pay only the minimum due. Do not do it. Please review your statement and look for information on how soon you can pay off the account balance. If you only pay the least possible payment, it may take years, even decades, to finish repaying. It is advisable to always pay your balance off every month or try to pay more than the minimum amount. This will help to establish a good credit rating, a score that financial institutions use to determine the rate you pay on your loan.

Real life examples:

Imagine that you are 18 years old and spent $1,500 on clothes and DVDs with your credit card interest rate of 19%.Cut expenses
If you pay just the minimum amount each month, and as a minimum equal to 4% of your outstanding balance (the lowest amount allowed by certain issuers), your down payment will be $60.To pay off the debt it will have more than 26 years. That equals 106 payments, and you will accrue over an additional $889 in interest. These numbers provided are true only if you do not buy anything else with the card and there are no other fees (e.g., late charges).

If the lowest payment is based on 2.5% of the outstanding balance, your payment will be $37.50. When you settle the debt it will be more than 35 years. That equals 208 payments, and have paid more than $2,138 in interest even if it did not charge anything to the account or other fees are charged.

Wondering how long it takes to pay off your debt? Depending on the information you provide, the payment calculator credit card helps you determine how long you settle the balance of your credit card.

Keep the use of your credit cards under control:

Continue reading How to avoid credit card fees with examples:

How to save money on credit cards:

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.Saving money on credit cards

  1. 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.

  1. Balance transfer:

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.

  1. 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: