Monday, July 31, 2017

Hacks That Will Help You Side Step Credit Card Debt

Sadly, an average wage never goes far enough, especially when you have a family. So, people turn to credit cards in their time of need for an extra stream of revenue. For the most part, everything goes well until the inevitable honeymoon period ends and the costs start to stack up. And, when this happens, the user gets saddled with a mountain of debt. Does this sound familiar? If it does, it will put you off applying for a credit card for the rest of your life. However, it is possible to avoid the obvious dangers if you follow the advice underneath.

Don’t Carry A Balance

Almost everyone that has ever had a card will run a balance at some point in time. However, it is essential that this only happens when you have no other option and not as a routine. Quite simply, not paying off the amount you have borrowed is how you end up getting stung by the high-interest rates. Thankfully, debt advisors suggest a simple fix: pay it back in full at the end of every month. Then, there is no reason to have to worry about APR and any other interest that is applicable.

Keep An Eye On The Promotion Period

Companies like to offer discounts that lure people in, such as 0% interest for the first twelve months. For one whole year, the balance never incurs a penalty so interest isn’t a problem. But, that changes when the grace period ends and the rate shoots up. When that happens, the potential for falling into debt is very high. Although it seems obvious, you have to keep a check on the promotion and when it ends. Lots of people take the deal and spend like there is no tomorrow, and then wake up to an extortionate bill.

Shop Around For Better Offers

The offer that you have in the beginning isn’t the only one that you are entitled to. Lots of companies have deals, and they are ready to offer them to you as long as you fit the criteria. Now, it is a good idea to be careful because you never know what the fine print will say. Still, there is nothing wrong with exploiting an offer if you are confident it suits your needs. For example, a person with a card that is about to accrue interest can swap the balance. It's a no-brainer as long as there is no charge for the transfer and the rate of interest isn't as high.

Use It Sparingly

Finally, don’t unsheathe your credit card the first chance you get. Usually, your current account will have enough to cover the cost of most purchases, so there is no need to use the credit. Plus, paying with a debit card makes you think twice about the purchase because you don’t want to spend money unnecessarily. A good tip is to use it for large amounts or to structure the payments.

Hopefully, these tips will help you limit the damage that a credit card can cause.

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