How to save money on your credit cards
If you’ve stuck with the same card you’ve been using for years, you could well be paying far too much for it. Here are a few tips on how to save money by adopting a few easy to implement measures:
- If you have a good credit history, you shouldn’t be paying more than 12% APR on your card. If you are, switch to another card with a much lower rate.
- If you have any savings, put them into your card instead. You may earn single figure interest on your savings but if your card costs you double figures in interest, you’d save and earn more in the long run by paying as much as you can towards your outstanding balances.
- Consider a home equity loan to pay off your credit card balance because these loans are usually low interest at only 6 or 7% whereas your cards could be charging considerably more.
- Try moving your balances to ‘no fee’ cards. Be sure to read the fine print though because ‘no fee’ could mean no fee YET.
- If you have more than one card, pay as much as you can each month from the one that has the largest outstanding balance – even if that means only paying the minimum amount on the others.
Always shop around. Good credit card deals are there to be had.