Increase in credit card spending is a worry for a majority of us. Hike in APR's,
costly annual fees, impulsive shopping, maxing out on credit limits -- all increase
our credit card bill. What is the way out? This article takes a look at few
steps which can drastically reduce your credit card bills.
- Don't always carry that plastic with you. Leave it at your home safely for
a few days and you will find that your spending's have decreased considerably.
It is human nature that we exercise the easiest possible option. If you don't
carry the credit card and decide to pay everything by your debit card or simply
hard cash. Things will change. Cash and debit cards do not put the burden
of high APR's and thus bring lot of discipline and savings.
- If you have a large number of credit cards, it is a big possibility that
you are filling up the coffers of credit card company without even spending
a penny. Yes, credit card companies charge inactivity fees too. So, if your
credit cards are simply lying around gathering dust. its better to get rid
of them altogether and cut the risk and penalties on them.
- If you have a consistently good credit history, you have a big negotiating
power. Use this to cut your credit card bills. This is how you can proceed.
Ask your credit card issuer about any increase in rates, or a high penalty
and simply tell him politely that you've another option from a leading provider,
which gives better rates and services and will be cheaper to own. Since, a
good credit history is behind you, it is most likely that the credit card
issuers will heed to your demand.
- Credit card insurances are the most notorious money suckers. It is very
difficult to claim one and the credit card issuers prey on our fears and charge
a huge insurance fees for simple things as fraud liability, which is protected
by federal law. Cutting on credit card insurance charges will save you a small
- Making just the minimum payments every month and feeling safe about your
credit card debts? Think again. This is the most costly method of repaying
your credit card debt. It will cost you about twice the amount you borrowed
and will take a lifetime to repay. Try not to miss any credit card repayment
and clear all monthly outstanding balances on a month-by-month basis.
Credit cards are for our convenience, but they earn a lot of money for the
credit card companies. People who falter on repayments and go on excessive borrowing
spree are the major group who give the credit card companies a lot to carry
home. While maintaining a little financial discipline and keeping the above
things in mind, you will be able to make much much more out of your credit card.