In today’s world, nearly all of us have at least one credit card. The Average family in America owes between 10-20 different lenders, nearly half of this is to credit cards. Owning a credit card has become much easier than in previous years. This has produced both good and bad results. We can have what we want faster but we end up paying much more for it in the long run. If cutting up your credit cards isn’t a practical idea then give close attention to the money saving tips in this article. With some careful planning you could see your monthly bills start to drop at a much faster rate.
Credit card companies make their money by charging interest. Each month a portion of your payment goes to clearing the balance and the rest goes to interest. Some credit card companies have gotten greedy with the amount of interest they charge. Company and store cards are generally the worst sometimes charging between 30-40% interest. Those in this situation have a few options. You should try applying for a major credit card such as visa or master card. Their interest rates will vary depending on which bank it is through. However, there rates are generally much lower that those of store cards. Major credit cards generally allow for higher limits. You could consolidate all of your High interest store cards onto one major credit card and save money.
For those that already have major credit cards, there are several money saving tips to help you keep more of your hard earned money. There are so many credit card companies that they now have to compete for business. This creates a few opportunities for customers. You should first phone your credit card company and simply ask for a lower rate. If you have been a good customer and continually pay your bill on time then they should do it for you. If you are unsuccessful then you should shop around. Apply for a card with a lower rate of interest and transfer the balance over. Even a 2-3 percent difference in interest rate can add up to substantial savings over time.
Credit Cards can be quite costly over a long period of time. However, by following the money saving tips in this article, you can reduce your payments significantly and keep more money for yourself.