Credit cards can prove to be a bit of a short-term lifesaver if you’re short of cash, but they inevitably end up costing you more money in the long-term. This is because the interest rates are often quite high.
It would be nice to think that you would never need to use a credit card again, but unless you’re Tim Sykes, Richard Branson or Bill Gates, you may just have to.
So how can you reduce the amount of interest that you pay on a credit card? Here are 4 tips that could mean you pay out less cash, while still having access to it when you need it the most:
Learn To Use Your Credit Card Less
Learn to lean on your credit card a little less. You may only use your card once or twice a month, but even so the interest soon adds up.
A great way to reduce the amount of interest you pay is to simply use the card a lot less, but if you cannot use it any less, try to reduce the amount of money you borrow every time.
Call The Credit Card Issuer, And Ask For a Reduction
Compare your credit cards’ interest rate to those issued by other companies. If you’re paying more than they offer, call your current issuer and mention you’re soon going to pay off your balance soon, and you’re thinking of going elsewhere.
Mention the other company has lower interest rates, and ask your current issuer to offer you a lower rate to keep you as a customer, and see what they say.
It doesn’t hurt to ask, and your issuer might be happy to lower your rates for the next few months, you never know, it’s worth a try.
Pay Off Your Bill As Quickly As You Can
When I was a child my mother used her credit card every week. She would buy $30 worth of groceries, and then pay the $30 back as soon as she had the money. This helped to keep her interest rates low, and often non-existent.
If you simply cannot pay off all of your credit card, try to pay some of it, even if it is just $10. The quicker you pay it off, the less interest there will be.
Make The Most of the ‘6 Months’ Interest-Free’ Offers
Take out a new credit card that offers 6 months’ interest-free, and transfer the money you currently owe to the new card. Just before the 6 months’ period is up, transfer the money to another credit card that is also offering the deal.
This is a perfectly legal way for you to reduce the amount of interest you pay, while giving you access to money when you need it the most.
Credit card companies make a lot of money from the interest that they charge their customers. If you’ve been hit with a lot of interest, use the above tips to help you pay less.