Many think that credit cards will only make us trapped and live in an endless cycle of debt. Not a few people who think credit cards will only make us in a ‘vicious circle’ because debt is considered as a bad thing.
In fact, debt is also not merely a negative thing but can be a positive thing. How come? For example, entrepreneurs can develop their business and be successful because they can inject capital, aka debt.
That is, debt becomes a positive thing that indicates a person’s desire to continue to move to grow and progress because life is dynamic.
Paying Credit Card Bills Will Feel Light If …
The most effective way to avoid the weight of paying credit card bills is as much as possible not to make mistakes. Of course, even paying bills will feel light.
That is the theory. Then, how is the practice? It’s easy, pay off all existing bills. Because by paying it off, there is absolutely no interest charged for our transactions. This is just one way!
There are still some other surefire tricks to feel light when paying credit card bills and benefit from having a credit card as a Good Credit review below.
Pay Credit Card Bills in E-Commerce
Now many e-commerce companies offer credit card payment services. Unmitigated, each time paying a credit card bill, we will get a cashback of up to hundreds of thousands! Now, cashback or discount coupons or discounts can be used to meet other needs. Wow, it must be lucky, right?
Pay off all bills
Another interesting and profitable thing and will make credit card bill payments become lighter if we pay off all bills. By paying it off, no interest is charged for using the credit card, aka free.
Except for cash withdrawals that incur interest but are still relatively small, which is only around 0.25% to 0.95% depending on the type of credit card. And interest installments, except 0% installments will not be charged interest. We are only charged a stamp duty which is only USD 6,000. Cheap, right?
Pay Before Maturity
Next is to pay credit card bills before the due date. So that we will not be charged interest and penalties for late payment of these bills. So that we do not need to spend some money that should not need to be spent.
Use a Credit Card Maximum of 30% of the Limit
It should be noted, why not use a credit card above 30% of the credit limit? This is for the sake of financial health of course. As a formula for financial health, it is mentioned that the debt safe limit is no more than 30% of income.
Well, if we only use credit cards no more than 30% of the credit limit, then when paying bills will not be too burdensome. That is, salary money is not used up just to pay credit card bills.
If necessary, use the Auto Debit Method
When we use the auto-debit service feature (auto-debit) for credit card payments, the balance in the bank account will be deducted directly to pay off. So that psychologically will relieve and avoid the desire to pay bills to a minimum which will later bring up some interest for bills next month.
Harmful mistakes when paying credit card bills
Well, so you never regret having a credit card, you should avoid the following mistakes when paying bills, including:
Late Paying Bills
Yes, of course, it’s not just a matter of credit cards, almost everything, if you’re late paying bills, will definitely incur fines. The name is also fine, it must be detrimental because spending some money is useless. So, don’t ever be late paying bills, okay?
Pay Below the Minimum Bill Limit
When the printed date of the bill arrives, we will definitely see details of the nominal use or transaction of the credit card and the amount of the new bill, as well as the minimum payment listed. Even the smallest nominal amount that must be paid to the bank is also found when paying credit card bills, both through internet banking and ATMs.
That is, we have to pay bills at a fixed minimum if we can’t pay it off. What happens when paying credit card bills below the minimum payment limit? Then we will be considered late, and the next month will be charged interest as well as late fees.
Credit Cards Are Profitable, Not Harmful
We will benefit from using a credit card because not only when in need can easily transact ie whenever and wherever they are, also do not need to pay interest for shopping except cash withdrawals (even then the interest is relatively small), and get rewards and discounts and various kinds of promos that will actually save expenses.
Of course, with this surefire trick will dismiss all allegations that using a credit card will only hurt. Yes, that’s a big mistake for sure! By doing a credit card bill payment strategy with the points above, it will get benefits that make you will never regret using a credit card. How can you regret it if you have benefited, right?