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Smart moves that can lower your credit card bill

Smart moves that can lower your credit card bill
Though, credit card appears to be a highly enticing plastic money option, the benefits it offers come at a huge cost i.e. interest rates charged on credit card are the highest among other financing options. However by taking some smart moves one can make a prudent effort towards lowering one's credit card bill.

Some such strategies could be:

1. Try and pay the dues before free credit period exhausts:

In case you make all your credit card dues during the free credit period, no interest liability will befall you and you'll be charged only an annual fee for the usage of the card.

2. Neglect 'Minimum amount due' criteria on your credit card statement:

'Minimum amount due' on the credit card statement that signifies minimum dues that can be paid by the customer for his credit card usage for a month should be completely neglected. Instead an attempt should be made to pay the maximum amount so as lessen the interest burden. Because the more you prolong the credit card payment, more interest will get accumulated over time.

3. Pay your credit card dues as and when your salary or other income gets credited:

Do not wait until the due date for credit card payment rather pay your credit card dues as and when you have garnered income from some source as this would help you in reducing your interest liability from that particular day itself.

4. Keep the credit card away until its dues are fully-paid:

Do not use the credit card with payment obligation for further purchases unless urgent as free credit period is no longer available on such cards.

5. Pay-off dues through EMI option:

Certain banks give you an option to pay-off your credit card dues via EMI at a lower interest rate in the range of 18-24% which is way lower in comparison to the usual rate of interest of 36-42% per annum. Nevertheless, any payment default, would result in the reversal of interest rate charges.


6. Replace your credit card with some cheaper loan product:

In case, interest liability on credit card is severely hurting your financials, you can certainly opt for other loan products available in the market that are relatively cheaper, including personal loan, loan with gold or property as a collateral security.

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