A credit card can be your best friend if you know how to use it properly. Making cashless shopping can entice you to spend more than you can afford, and it can become a problem over time. Until the full amount is settled, the interest can accumulate and add up to your balance. Reducing your credit card bill allows to make room in your budget for other things that you would like to have. Also, it ensures that your credit card spending do not get out of hand.
- Plan your monthly expenses. Prepare a list of your monthly payables and must-buy items. If you are an impulse buyer, you may ask someone to shop for you. It will also help to leave your credit card at home, or keep it somewhere safe so you wont get tempted by a sale or buy 1 take 1 offer.
- Pay your dues on time. Late payments incur fees. Unless you are certain that you can always make it to the bank on or before due date, you may want to set up an automatic debit arrangement with your salary bank account for your monthly credit card bill.
- Monitor your credit card transactions. Credit cards have a limit that will incur a fee when exceeded. But it should not be the only basis of when you should stop. Setting your own limit and keeping track of your credit card transactions can help reduce your monthly bill.
- Pay the full monthly balance. You may choose to only pay the minimum amount due, or avoid interest charges by settling the full monthly balance. The minimum payment barely reduces the balance, which will continue to incur interest charges until it goes down to zero. The trick is to use the credit card up to the amount your budget can accommodate.
Exercising discipline in your spending is a key to reducing your monthly credit card bill. Take note that credit card purchases are what mainly inflate the credit card balances fees and charges are just an extra load. It is also important that you fully understand how the credit card system works. You should be able to tell whether or not the balance that appears in the bill is correct, and if the charges are applied appropriately. Credit cards are said to be one of the greatest inventions of man, but it can turn into a nuisance if not used rightly.
About The Author
This guest post was written by Jason. Jason has written many articles on using and paying off credit cards. He is a content writer for creditcards.com.au.