Statistics show that Americans are in love with their credit cards. They find plastic to be the most convenient tool for shopping and paying bills. Credit cards make payments and expenses so convenient the average credit card balance Americans hold amounts to $8,000. This is, indeed, a great amount of debt. If you want to avoid debt and save more on your credit card bills, try these 7 ways:

1. Choose the best credit card

Not all credit cards are created equal. There is a credit card that will suit your particular needs. You will need to do some research to find that perfect card for you.For example, if you want convenient shopping but can’t afford to go the extra mile in shopping expenses, it is best to obtain a credit card that can offer you reasonable credit limits. In this way, you will not be tempted to max out your card and accumulate debts you can’t afford to pay.

2. Go for the lowest interest rate

If you think you can’t pay your credit card bills on time but are willing to pay your balances in another period, it is best to get a credit card with lower interest rates. Consumers may not be aware of this, but one of the reasons why debts are getting higher is based on the interest rates. The actual balances are made worse through interest rate charges.

3. Choose the reward credit cards that suit your lifestyle

Don’t get a credit card just because it can provide you with several rewards. Not all rewards are worth your time and money. For example, a frequent flyer’s rewards credit card may not be functional if you aren’t a frequent traveler.

4. Keep a record of all your expenses

With credit cards, convenience is the name of the game. Be sure to keep a record of all of your purchases by saving your receipts. This serves several purposes – two of which are to help you at tax time and to help you reconcile your receipts to your statement. Another reason for saving your receipts is to help you see what you are actually spending your money on so that you can accurately budget your money.

5. Do not keep balances

Never let your balances stay on your credit card bill statements for long. This means that if you have accrued balances for the month, try to pay them immediately. Paying only your minimum balance will dig you into a debt hole and could trigger further debts. If you pay your balances monthly, you won’t be charged with interest rates, so you get more savings.

6. Be wary of cash advances

If it isn’t an emergency, never take cash advances on your credit card. Financial experts say that cash advances reap higher interest rates compared to the ones that you have on your credit card purchases. In addition, you never receive a grace period for cash advances, so you begin paying interest immediately upon the withdrawal.

7. Ask for a lower rate

If you have been a good customer and paid your bill on time, it wouldn’t hurt you to call your bank or your credit card issuer and ask for a lower rate.

 What other ways can you think of to save money with credit cards? What methods have you used?

To Your Money Pile,

Andrea LaGrow

Andrea@TheMoneyPile.com

Twitter.com/TheMoneyPile

 

 

If you enjoyed this post, make sure you subscribe to my RSS feed!