3 Creative Ways to Avoid Paying Credit Card interests

There is a popular myth that credit cards are the end of your financial independence. It will trap you into a finance circle in which you will have to pay huge interests for the amount of credit that you have taken while buying something with a credit card. However, the fact is that if you know how to manipulate the credit card usage, you can easily avoid making payments for the credit card interest.

Credit card can be a very beneficial tool that can not only help you in your financial statue, but also help you to improve the rating for your credit or rather credit score. Using a credit card, you can enjoy additional benefits such as cash rewards as well as airline miles. But for that, you need to know how the credit card expenditures need to be controlled. With uncontrolled monthly payments and interest, it will be quite problematic for you to manage your credit debts.

  1. Utilize the grace period:

The credit card providers or creditors always offer you the statement and provide you with a billing cycle or a grace period in which you are supposed to pay off the balance. This is quite a lot of time. As you manage to pay off the balance every month in full, you will not need to pay the interest amount. However, this rule is applicable only in case of credit balances and not in case of cash advances and balance transfers. To make sure that you are able to pay off the balance amount in full every month and that the residual balance amount that you are incapable of paying is not put forward for additional interests, you need to manage your expenditure.

  1. Do not skip payment:
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Most people make the big mistake of skipping a credit card payment. It needs to be understood that credits are just like any other debts. If you skip the repayment amount for any one month, you will not be able to manage repaying further in the next month. This is because the amount will increase, the interest rate will be added and also you need to pay the additional repayment amount for the next billing cycle. Hence, it will severely affect your ability to pay off the debt.

  1. Pay on the same day of transactions:

Although credit cards offer you a grace period, there are credit cards that do not offer this grace period. This is the case when you did not pay off your previous bill. As the balance was advanced and forwarded, the credit would be considered counted from the very first day of the billing cycle. In that case, it is always useful that you pay off the amount on the very transaction day on which you have made the purchase.

Credit cards need to be used only as a means or tool to purchase those things that you need and not something that you want. This is the very basic rule that you always need to remember in order to enjoy its benefits.