Statistical reports show that Americans are in love with the plastic card. Nearly 81% of US households have at least one credit card. They find that these cards are the most convenient tool for shopping and paying recurring service bills.
Credit cards make payments and expenses so convenient that the average balance of US credit cards is $ 8,000. This is, indeed, a large amount of debt. So, if you want to avoid debt and save more on your credit card bills, try reducing your expenses and follow the rules below to save on your credit cards.
Choose the best credit card
All credit cards are not equal. There is a special credit card that will better meet your needs. Obtaining this type of card will provide you with the rewards, services and interest rates that will meet your needs.
For example, if you want to shop often, but can not afford to make additional expenses, it is best to get a credit card that can offer you reasonable credit limits. In this way, you will not be tempted to overload your card and accumulate debts that you can not afford to pay.
Opt for the lowest interest rate
If you think you can not pay your credit card bills on time, but are willing to pay your balances in another period, it’s best to get a credit card with the highest interest rates. low possible. Consumers may not be aware of this, but one of the reasons that debts become higher is based on interest rates. The actual balance is compounded by the added interest.
Choose Reward Credit Cards That Fit Your Lifestyle
Do not get a credit card just because it can provide you with several rewards. All rewards are not worth your time or your money. For example, a loyalty credit card may not be practical if you are not a frequent traveler. But if you are, getting a reward credit card for traveler can give you discounts as well as points that can be converted into tickets. This will be substantial savings considering the prices of airline tickets nowadays.Keep track of all your expenses
With credit cards, convenience is part of the benefits. However, that does not mean that you have to neglect your responsibilities. One of them is to keep a record of all your expenses. In this way, you will be able to identify which purchases were not needed at all. So next time, you’ll know what to avoid.
Do not keep balances
Never let your balances stay long on your credit card statements. This means that if you have accumulated sales for the month, try to pay them immediately. Paying your minimum balance will not do you any good. In fact, it could trigger other debts. In addition, interest rates only apply when you have balances and interest rates are somehow additional expenses. If you pay your balances monthly, you will not be charged interest, so you’ll save money.
Beware of cash advances
If it’s not an emergency, never take cash advances on your credit card. Financial experts say that cash advances earn higher interest rates than you would on regular credit card purchases, which by their nature are also booming.
The combination of these two will certainly lead you to debt problems. In addition, the interest of a cash advance does not take certain periods before starting, which means that the fees will be taken care of instantly. It will be very expensive if you are not ready to pay your balance immediately.
Request a lower rate
If you have been an obedient customer and pay your bill on time, it would not hurt you to call your bank or credit card issuer and ask for a lower rate.
Surveys show that nearly 55% of respondents cut their interest rates simply by asking their bank or credit card company to act accordingly. With lower interest rates, you can certainly save more, especially if you are the type of credit card holder who fails to pay the balances on time.
All of these things are taken care of to help you reduce your expenses and save more on your credit cards. These things have been proven effective. It’s now up to you to decide whether you will listen to these tips or not. Just remember that your actions will always tell you the kind of life you want to live, so make better choices and start saving now.