Instead of giving credit cards a workout, try putting them on a diet if you want to save money over the long term.
This time of year, it’s tempting to break out the plastic. I have sworn off plastic myself, but I know many people that can’t help getting a little carried away during the holidays. It’s easy to do!
There are some other things to keep in mind about credit cards too. For one thing, you can sign up to pay your bill online with many different cards. This is a great option if you happen to be running a little late or forgot to mail off your payment.
In many cases, you can pay the same day the payment is due (if early enough in the day) and your payment will be posted on time. Many credit card companies offer this service free of charge, as opposed to being charged several dollars (often $10 or more) for making a payment by phone. You will of course, also avoid late fees this way, and those fees add up. They add up not only because the fees are so high but often because they are added to your balance and interest is then charged against the fees as well. Interest is one expense that can cost consumers a fortune throughout the year, especially as rates rise.
If you do use your credit card for Christmas shopping, try to do so only when necessary. A good example is if you don’t want to carry cash. Also, try to use the card with the lowest interest rate, just in case you don’t pay off the purchases immediately, which sometimes happens despite our best intentions.
A good rule to live by is to avoid purchasing anything you cannot afford to pay off within the grace period, or before finance charges begin to accrue.
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