Even when you have a credit card with low interest in your pocket, it is better to just keep your sanity intact and be in control if you really want to improve your finances. You shouldn’t have to be reminded what got you here in the first place. So if you are thinking of splurging, hold that thought and try to recall for what you got your credit card for no credit to begin with. These are there to help you out and guide you to achieve a better financial position.
Don’t Refrain From Paying More Than Just The Minimum
Whenever you make your monthly credit card payments, you come across a set minimum amount that you can pay. This is just there so you can avoid late fees and that prevents you from losing your incentives. Now, the right way to go about it is to use this facility for the month where you feel you are heading towards tighter days. When you are on a limited budget, you should aim for just the minimum but it is never a wise idea to stretch that over a long period of time. This means you will take a longer time to pay off your balance. Also when you do this, you end up paying much more in interest as well and so that just defeats the entire purpose of owning credit cards with low interest. This is a very expensive way of repaying your loan.
Have You Ever Thought Of Setting Up A Direct Debit?
It happens with a lot of us that we completely forget to pay off our balance every month. You don’t want that. In this case it will be very helpful to just set up a direct debit on your account. This way you don’t have to pay off the minimum amount manually. You can automate it and may even choose an amount slightly higher than the minimum like we discussed above. This way you have met the minimum and also know that eventually the interest amount you have to pay is not going to be too much. You can gradually increase the amount further so you can have freedom from your debt sooner.