Money Saving Tips - Credit Cards
Credit cards are one of the most expensive forms of credit there is - and the industry is not renouned for a consumer friendly approach. Yes, they will make many tempting offers of Credit (over 600 BILLION credit card offers in 2006 ) and the temptation of course is to say yes! Yes, I can buy what I want now and just pay for it later. If you take up these offers, you will pay later, big time! The reason credit card companies market to you SO hard is becuase they make SO MUCH MONEY from people who don't realize just how much they are signing away.
Because Credit Cards and Credit Card Debt is such an issue for so many people, I have dealt with all aspects of Credit Cards here. The very best Money Saving Tip I can give is to simply stop using credit cards and save yourself the anxiety and anger of Credit Card Debt.
If you are already in Credit Card Debt - the savings can be enormous if you pay it off ( See Paying Off Credit Card Debt ). You need to take action NOW. For those who do not have pressing Credit Card Debt but who still want to use their Credit Cards; here are a few money saving tips that may help protect you from the worst of it.
- Use a debit card instead
- Use a Pre-paid Credit Card - They are like a Credit Card, except you pre-charge them with cash. It means you never get in debt but get all the convenience of a Credit Card
- Choose your Credit Card deal carefully - keep checking out the competition and be prepared to switch. see Choosing A Credit Card
- If you are paying a high rate of interest, call up the company and ask them to reduce your interest or you will switch to a rival
- Try to NEVER carry a balance - pay your card off as soon as you receive the statement
- Do not use your credit card to get cash from an ATM - they charge an extra percentage for that, if you do it from another bank - they will also charge you!
- Never Cash Credit Card Cheques - They are treated in the same way as withdrawing cash, with all the punitive chages.
- Don't let them add insult to injury by charging you an annual fee
- Do a zero-rate transfer to a more competitive rate - and then pay the card down NEVER make purchases on this new card (see Credit Card Traps)