Credit card charges

 Credit card charges

credit card

I will show you how to avoid losing money in credit cards....!

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Credit card charges

Let’s suppose you have a credit card and you get the credit card statement I will teach you to understand that credit card statement, when you get your credit card statement there are 3 main things to look at total charges, minimum charges, due date which means you have to pay you minimum charges before DUE DATE to avoid late fees.

Paying minimum charges avoid late fees only you will have to interest charges on rest of the amount and these interest charges will be added until you pay the complete bill.

I want to tell you credit have the highest rate of interest and it is so high that if you don’t pay you complete bill for next 4 to 5 month or keep on paying the only minimum amount you payable amount will be double because the minimum interest rate of credit cards is 36% and some credit card charge up to 48% annually.

See even if you take personal loan bank also charges you 16% - 18% of interest and here you have to pay double or triple of that on your credit card’s bill so, this is not wise leaving a single penny overdue.

Suppose your credit card bill is RS. 3000/- in your statement charge will be 300 – 400 an due date is let’s suppose 29 of that month till your last date, you would not get any extra charge if you pay the full amount before the due date you would not have to pay any financial charges this is what I do every month.

 I pay the full amount of all my credit cards before the due date, in fact, I pay little more so that it can be adjusted in next the statement never leave any overdue on your credit card minimum charges can help in avoiding late fees only but you can’t avoid interest/finance charges.

There is another way to avoid these charges if your savings account & credit card are of the same bank you can set up auto-debit feature if you have net banking you can search auto-debit an option where you can set up your credit card payment on auto-debit it will deduct your complete payment automatically from your saving account now you can relax as it will be on auto mode.

If you have internet banking then you can visit your bank and sign up for this option even you can avail this in other banks too if your bank account is in standard chartered and your credit card is in ICICI even then you can fill ECS FORM for auto-debits you authorize that bank to pay credit card bill from your savings account uses this the option then you would have no worries of late payment charges.

If for any reason you don’t want to set up auto-debit suppose in some month you need some more days to pay the credit card bill and you can pay interest charges for these days or any Another reason you don’t want auto-debit.

 you can write down your credit card’s due dates in excel sheet or on some paper and then you can put a reminder of those payments so that you can pay before the due date but always remember credit card interest rate is the highest and its payment is quite important & should be on priority pay other loans after credit cards payment