Statistics prove
Americans are in love with plastic. with credit
cards. Nearly 81% of American households have at least one
credit card. They find credit cards as the most convenient tool for
shopping and paying bills.
The credit cards make
spending so convenient the average American now has a credit card
balance of around $8,000. That's a lot of money.
Just the interest on
$8,000 is a lot.
So if you want to avoid debts and
save more on your credit card bills, try to cut back on your
expenses and follow these rules on how to get that credit card debt
under control.
1. Choose the best credit card
Not all credit cards are
created equal. There is a particular credit card that will suit your
needs. Getting this type of card will provide you the rewards,
services, and interest rates you need.
For instance, if you want
convenient shopping but can't afford to go the extra mile in
shopping expenses, it is best to get a credit card that has reasonable credit limits. In this way, you will not be
tempted to max out your card and accumulate debts you simply can't
afford to pay.
2. Go for the lowest interest
rate
If you think you can't pay your
credit card bills on time but are willing to pay your balances in
another period, it is best to get a credit card with lower interest
rates.
Consumers may not be aware of
this, but one of the reasons debts rise so fast is interest rates.
You owe more because of high interest rates. Take the time to search
out cards with lower rates. Read the fine print on all the credit
cards offers.
Compare the fine
print. It's really important.
3. Choose the reward credit cards
that suits your lifestyle
Don't get a credit card just
because it can provide you with several rewards. Not all rewards are
worth your time and money.
For instance, a frequent flyer’s
rewards credit card may not be functional if you aren't a frequent
traveler. But if you are, getting a flyer’s reward credit card can
give you discounts as well as points that can be converted into
tickets. This can be savings considering the prices of airline
tickets.
4. Keep a record of all your
expenses
With credit cards, convenience is
the name of the game. However, it doesn't necessarily mean that you
neglect your responsibilities. One of which is to keep records. Know
how much you've spent, and look over the record regularly to
identify purchases that weren't really necessary.
So next time around, you
will know what to avoid.
5. Do not keep balances
Never let your balances
accumulate. Ideally, you should try to pay balances in full every
month.
Paying just the minimum balance
won't do you any good because it adds to your debt. You don't really
get anything in return for paying interest except deeper in debt.
Work toward paying more than the minimum and try to increase
payments each month until the balance is gone.
6. Be wary of cash advances
If it isn't an emergency, never
take cash advances on your credit card. Cash advances always cost
higher interest rates compared to the ones on your credit card purchases.
So if you can't afford purchases, you certainly can't afford cash
advances.And
interest charges on cash advances start immediately.
7. Ask for a lower rate
If you have been an obedient
customer and pay your bill on time, it wouldn't hurt you to call
your bank or your credit card issuer and ask for a lower rate.
Studies show nearly 55% of
survey participants trimmed
their interest rates simply by asking their bank or their
credit card companies for a better rate. The credit is both
profitable and competitive. It's likely your bank or card company
won't want to take a chance on losing lose you.
If you can't pay off your
card balance every month, a lower rate can really help.
These ideas can help you
cut back your expenses and save more on your credit cards.
Everyone dreams of
being out of debt. And everyone can do it by working hard and
focusing more attention on the problem and the solutions.
Start now
by making good choices. Who knows? You might get really good at it.
