How To Avoid High Credit Card Fees
Using your credit card wisely is apparently one of easiest things, but most people usually end up with high interest charges. However, there are several ways one can avoid high credit card fees.
At the same time, big amounts in credit card bill can be upsetting and intimidating to many people. People usually complain that once they pull out their credit card, it is often difficult not to spend. Spending wisely is the key to avoiding high interest fees.
Instructions
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1
Change your spending habits
It is common for an individual to become a spendthrift once he/she gets a credit card from a bank. Although credit card brings you lot of comfort as you can buy things you never thought you would be able to before getting it, it can make your life miserable as well if you do not keep your debts under control.
Be careful while spending and do not use credit card like cash. If your financial condition does not allow you to pay off big debts that may come in the form of credit card fees, keep your card locked away and use it in case of emergencies only. -
2
Stop buying daily-use items
It is time to put a stop to buying daily-use items through your credit card. Credit card spending on items like food, utility bills, fuel for personal vehicles and clothing hurts a lot. If you have developed this unwise habit, you are probably making banks happy. -
3
Use cash for regular purchases
The sooner you get used to purchasing daily-use items on cash the better. Although it will take some time for you to kill the habit of using credit card for everything you want to purchase, setting aside a sufficient amount of cash for daily-use items will help you get your debts under control. -
4
Do not make minimum payments
If you see your credit card balance mounting by the day, the only way to steer clear of debt trap is to make large payments each month. Never make minimum payments as it will do little to stop your balance from growing. Bear in mind that banks use compound interest rates to charge your credit card, which means that making minimum monthly payments is utterly useless and it cannot put you out of trouble.
