Frugal Living, Thrift, and Saving Money
Budgeting Credit Card Expenses
An easy way to make sure
you always have enough money to pay off your credit card is to deduct each
purchase you make during the month from your checking account register when you
get home. Then you will know you have the money set aside to pay the bill.
Paying Off Your Credit Card Debt
Credit cards are a
great convenience. Used wisely, they can even be money makers with cash back and
other rewards. However if you run up a big credit card balance, know that you
will NEVER pay it off by only making the minimum payment. If you want to get rid
of credit card debt, ignore the required charge, and give as much as your budget
Paying Off Your Credit Cards
One of the most effective
strategies in paying off your credit cards (assuming the interest rate is the
same with several cards) is to pay the smallest balance off first. When the
first card is paid off, apply the money you were paying to that card to another
credit card bill. You will see more progress, which will help keep you
motivated. However, if the interest rates vary on your credit cards, ALWAYS pay
off the card with the highest interest rate.
Closing Down Credit Cards
Be careful about closing
credit cards when you still have a balance on them. Per their contract, they may
be able to raise the interest rate.