Written by imoney
Are you struggling to pay off your credit card interest and fees because of accumulated fees, penalties and interest? You’re not alone. Using a credit card provides convenience, and many benefits. You can make payments without cash, withdraw cash using the cash advance facilities, and indulge now with money you do not have yet.
But good things aren’t free; in return for these conveniences and facilities, credit cards incur fees and charges, such as over limit fees, cash advance fees, late payment fees, and credit card interest charges.
We have put together simple steps you can follow to avoid these unnecessary fees and charges (or at least some of it).
Pay your outstanding balance in full
There’s no easier way to avoid these fees by paying your credit card bills in full, on time. If you can’t, at least pay the minimum payment amount to avoid unnecessary penalties and interest charges. Be reminded that banks require credit card users to pay additional fees for paying below the minimum fee for your outstanding balance (OSB).
Know The Due Dates
on Your OSB
It’s easy to forget when your outstanding balance needs to be settled, especially when you hold multiple cards. Keep a calendar to remind you of these dates! Some banks provide a grace period (usually around 20 days) where you can settle your bill beyond your due date without paying any extra charges.
Avoid or Cut Down on Cash Advances
Most banks allow for cash advances on credit cards. However, these are high-interest funds. A fee is charged every time a user takes advantage of this feature. It’s tempting to know that you can get quick cash using your credit card but be aware of the fees before diving into it.
Spend only within your credit limit
By keeping track of your monthly spending, you will avoid spending beyond your current credit limit and save money in the long run. Analyze where your money is going and see if you could cut back on them or “postpone” your gratification for when you have spare cash in hand.
Love this article? Now see if you’re making some of these common credit card mistakes!