Statistics show that Americans have an undying love for plastic. The plastic I’m referring to right now are credit cards. Sorry ladies, well, actually, housewives might end up thanking me for this.
Nearly 81% of American households have at least one credit card. People see these as the most convenient tool for shopping and paying bills and you can pay that back over time. Live today, worry tomorrow, that’s the American way, what’s not to love, right? Well, experts realize how convenient these cards are and revealed that the average credit card balance Americans have amounts to ~$8,000. That’s a significant amount of debt.
If you want to avoid debts and save more money on your credit card bills, try cutting back your expenses and follow these 7 tricks on how to save money on credit cards.
Not all credit cards were created equally. There are different types of cards that will suit your needs. Getting this type of card will provide you with competitive rewards, services and interest rates which will ultimately determine how much money you are saving in the long run.
For instance, if you want a card that’s convenient for shopping but are not in a position to cover those expenses upfront, (well you shouldn’t go shopping, but if you do) it’s best to get a credit card that offers you reasonable credit limits. This way you’re less inclined to max out your card limit, which will not only hurt your credit score but will accumulate debts you cannot afford to pay, especially with today’s interest rates.
If you even believe for one second that you might not be able to pay your credit card bills on time, but are willing to pay your balances down over another period of time, you need to choose a card that offers the lowest interest rates. These cards usually have limited benefits and less rewards but will keep you from accumulating even more debt and hurting your credit score.
Not all consumers are aware that the reason why debts are increasing is due to interest rates. The actual balance you owe will keep increasing the longer it takes you to pay it off and that’s before you tack on any late, monthly or annual fees.