Spending money carelessly can be never a good idea. When it comes to credit cards, the misuse of these can often land you in a debt trap. Therefore, you always need to be concerned about spending your money carefully. After all, if you get into the debt trap, it would become difficult for you to get out of it. Plus, it will waste all your money and energy at the same time. And you will also have to pay the interest rates in the 36-48 percent range on the credit card’s outstanding balance (right after the rolling over has taken place). Therefore, you can refer to the five easy ways of paying less to your credit card company. In this particular article, you will become aware of the five ways of paying less to the credit card company. To know more, keep reading on.
Paying the Outstanding Amount of the Credit Card
It becomes mandatory to pay 5 percent of the credit card’s outstanding amount on credit card issued by the issuer. The balance can get rolled over to the upcoming month. This is something that you must avoid doing, for this can also lead you to land up in a debt trap. What you can do is, try making the full credit card payment online right on due dates so that the interest cost becomes nil.
Proceed with Balance Transfer
In case you are hard-pressed for the funds, you might be unable to pay the bill amount. Nonetheless, revolving the credit to the upcoming month incurs a huge interest charge of 3 – 4 percent every month. What you can do is, go for the balance transfer. This is possible only when you hold more than one credit card. The card can limit up to the amount that has been available as BT. Nevertheless, it can also get blocked once the facility has been used. If you are using the facility, you should be familiar with the fact that you can transfer the amount to another card at a reduced interest rate.
Depositing Withdrawals Back to Earliest
In case you need to withdraw some cash from ATMs with the best use of your credit card, you have to make sure to deposit back the cash as early as possible. These withdrawals don’t come with the interest-free period. What you can do is, put back the amount. This will help you avoid paying a higher rate of your interest.
Converting to EMI
There could be some high purchases on the credit card. In case you are paying it off entirely, make sure you do that through the EMIs. This will allow you to pay a lower interest rate than the actual amount you were supposed to pay. Upon the conversion, your interest might be about 14 to 24 percent lower. What you can do, remember that there are two types of EMI conversion facilities. The first one happens to be the merchant EMIs which the merchant offers you. On the contrary, the second one is that the card issuer might offer you the EMI option on the certain high ticket purchases. You should be familiar with the fact that the reward points won’t accrue on the EMI payments. You might also keep an eye on the processed charge that is involved.
The new purchases should come sans interest-free period
If you’re proceeding with the rolling over of the outstanding balance to next billing cycle, then you should know that it won’t incur the monthly interest at 3 to 4 percent rate. And if you keep rolling over the new purchases, then the interest potion might balloon. What you can do is, avoid making the fresh purchase unless the outstanding amount gets cleared.
This brings the closure of the guide narrating about the five easy ways of paying less to the credit card company.
