Are your credit card’s payment terms and interest rate making debt reduction an impossible task? Have you ever missed a payment on your credit card and had to deal with unexpected consequences without prior notice from your bank?
Banks conduct regular reviews on your credit card limit and interest rate, based on a number of factors of which repayment history is one. Thoroughly check the terms and conditions on your credit card to avoid bad surprises. You might notice that failing to make one payment on time (and one only) might result in a reduced credit card limit or a higher interest rate, making it harder for you to cope with debt.
Credit card issuers calculate and charge interest differently. They also penalise late repayments differently. In general, expect to pay up to $60 if you are late in making a minimum repayment. With so much focus on interest rates and fees, many cardholders, especially those who pay late, would benefit from looking at how interest is calculated and think twice before choosing their credit card. When getting a new credit card avoid those that fail to give credit for part repayments.
When it comes to managing credit cards and to make sure your credit card debt stays under control, keep in mind those 2 simple rules:
1. If you think that you won’t be able to pay your card off in full every month, forget about ‘free days’ and try to get the lowest rate possible (aim for under 12%).
2. Set up a reminder for your minimum monthly repayment. You might want to synchronise the repayments with your pay day.
Our goal at lifeafterdebt.com.au is to provide financial solutions to people in debt. If you are struggling with unmanageable debt or simply seeking for Financial Advice in Perth, contact us today to obtain a free and confidential financial assessment.
Our goal at lifeafterdebt.com.au is to provide financial solutions to people in debt. If you are struggling with unmanageable debt or simply seeking for Financial Advice in Perth, contact us today to obtain a free and confidential financial assessment.