WalletRehab - Ways to save money

Credit cards are the last thing you should do to save money. They come with high interest rates, and they compound every month you don’t pay them off. Furthermoer, most cards charge fees for using them annually. Some of these tips can help you reduce how you use your credit cards, or at least save some money if you have to.

Pay your balances immediately

There may be times in emergencies you need to use your credit card to pay bills, or purchase things off of the internet. In this case, make sure you pay the debt immediately and avoid late fees. Payoff the balance as quickly as possible, as credit card companies tend to raise rates regularly.

The savings can be substantial as they compound month by month, often by over 20% in a year.

Stave off Impulse Buys

The more money you have in your pocket, the likelier you are to spend it. A credit card in your pocket is like having all your money in your pocket, a temptation that is often hard to resist.

Debit Cards

MasterCard’s and Visa’s debit cards are great for usage on the internet, and will help you monitor your spending. They are not credit cards though, and you need to make sure you treat them as such. You wont get into credit trouble, but you may inadvertently spend your rent.

Avoid Cash Advances

Cash advances are dangerous. When using your credit to get a personal cash advance, the interest rate almost doubles. Interest starts getting calculated almost immediately with cash advances too.

If you are in debt save money by not using credit cards. Credit companies that say that they can get your out of debt are trouble, as they are actually seeking the opposite. They are tempting you with the dream of cheap almost free credit. The same goes for pre-approved cards and any with upfront frees. In all likelihood, there are loopholes you could drive a car through.