How to Avoid Excessive Credit Card Charges

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Contrary to some people’s belief, credit cards are not evil. When used without caution, credit cards can result in excessive charges and interest rates. But when used properly, credit cards are financial tools that can help you with your financial needs. It’s all a matter of knowing how to pay off your credit card so you won’t have to shoulder excessive charges.

So, how exactly can you avoid excessive charges? Below are some smart moves you can do to make sure that you credit card is a tool and not a cause of your financial downfall:

Credit-CardsAvoid using the card for unnecessary purchases

Shopping with your credit card may be convenient but this habit can also become your pitfall. Use cash when paying for your purchases if possible. To avoid interest and other related charges on your credit card, reserve it for important purchases. Doing so will make paying off your balance easier and more manageable.

You should also stop using your credit card for one full billing cycle if you feel that the charges are getting out of hand. Focus on paying off the balance in full each month if you can. If not, just focus on paying it off until your balance is significantly reduced.

Aim to pay your balance in full each month

One of the key steps to avoiding credit card charges is to never miss a payment. Even better is to aim to pay your balance in full each month if you can. You should pay your balance a few days before your due date if your goal is to have a zero balance. Otherwise, you can set up a debit card automatic deduction to pay a certain amount of your balance each month.

Remember, however, that repaying only the minimum is not recommended. Try to pay more than the minimum to avoid excessive charges and avoid using the credit card for now until the balance is significantly smaller.

Try to cut the cost of interest

High interest rates are what make credit cards dangerous to your finances. If you see that most of your payment goes to interest then it might be time to do something about it. You can actually cut the cost of the credit card’s interest by getting a new card to shift your debt. This is what you call balance transfers.

When you get a new card, be sure to apply strategy number 1 where you use it only for important purchases. At the same, make sure that you’re also paying off your card regularly.

Re-evaluate your finances

One of the reasons why consumers are stuck with excessive credit card interest and charges is because of failure to assess finances. When you’re relying on your credit card for majority of your monthly purchases, you should also be responsible to check your credit card balance and interest each month. Make it a point to obtain your financial statement to check the details each month. Assess your purchases and finances then make adjustments accordingly so you can reduce the interest and charges.

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