Having a credit card can be a double-edged sword. It gives you the ability to charge things you need right now with the opportunity to pay it off later. Unfortunately, it also comes with a cost. Interest and potential fees can trump the convenience of a credit card, which is why its crucial for you to use your card wisely.
The good news is that you can take advantage credit and reduce your fees and interest in the process. Its all about playing the game the right way. You just have to know how to come out ahead every single time.
Cut Your Monthly Credit Expenses
Are you tired of paying high interest rates and other charges? Maybe youre looking to maximize your opportunity without having to suffer the consequences? Whatever the case may be, there are ways you can make the scales tip in your favor. Just follow these 3 simple tips below and you will see your monthly credit expenses sink to the bottom!
#1 Drop Your Rates
This is a technique that has been peddled year after year, yet many folks still ignore it. Most dont see the idea of calling their credit card company to ask for a lower interest rate as something that is worth their time. Unfortunately, you never know what can happen until you try.
The idea for dropping your interest rate is simple. Give your credit card company a ring and see if they can negotiate a lower interest rate. Even if its for a short period of time, its worth your effort. Most companies will work with you, especially if youre in a bind and anticipate any potential financial road blocks that may be coming your way (i.e. job loss, reduction of income, increased medical bills and so on).
#2 Use Cash Rewards to Pay on Your Balance
Credit cards that offer cash rewards are quickly becoming a hot commodity. The smartest way to take advantage of your cash rewards, however, is to apply them to your monthly balance (or future payments). Any cash rewards used towards your balance will reduce your payment, which means that less interest is paid.
At the end of the day, putting cash rewards towards your balance will help a few extra bucks in your pocket every single month.
#3 Make Payments Bi-Weekly
With more credit card companies moving to an online payment system, following a bi-weekly payment schedule has never been easier. By setting up an automated bi-weekly pay plan, you will get the chance to lower your monthly charges and fees, helping you save a little bit of cash each month.
To make this work, simply split up your regular monthly payment into two equal portions and schedule a payment every other week. Hitting your balance like this will reduce your average daily balance, which ultimately lowers your interest charges. You essentially pay the same amount every month, but the increased frequency will keep unnecessary interest from racking up.
Dont Become a Slave to Credit
Never let credit get the best of you! Make sure you stick to these simple strategies and you will be able to make a significant dent in your credit card expenses. Remember to pay attention to the breakdown of your monthly statement and it will be clear how much of a difference a few simple tweaks can make.
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