Its easy to get in the habit of using a credit card when you make purchases, specially since it is so easy to get a credit card now a days, you can even get a credit card application online.
Its easy to get in the habit of using a credit card when you make purchases. But why is that? Why does it feel like a better option than cash when you’re getting a big deal?
Cash is convenient. Credit cards are convenient. But what about if you need a larger amount of money? In that case, you can either go cash-only and make that transaction all in one go, or you can pay off the credit card balance in installments over a long period of time. This is what banks do.
The best and fastest way to pay off a credit card balance, is to pay the balance as soon as possible, using one of the cards that offers installment payments, but here’s the catch: If you do that, you’ll pay interest on that balance. Since you’ve paid interest, the balance you’ve paid on your credit card will rise again. So even though your interest-free interest-carrying days are nearly up, you can’t get rid of it with an installment payment. Instead, you’ll have to either pay your credit card off, or apply for a credit card with a high balance transfer fee, to get out of the interest trap.
You might be able to avoid paying the card off altogether and avoid the interest trap, by paying your bill every month in full and on time (in addition to keeping a good credit score), by applying for the best possible credit cards for the highest interest rates, or by paying off your balance every month, or all at once.
If you are still struggling with paying off your credit card balance every month and/or with managing your credit card balance, or you find that you do not have any money coming in at the end of each month, it may be time to get help. Here are some ideas for what to do and some suggestions for resources:
1. Talk to your credit card company. It may be that your credit card company will be able to work with you to help you pay off your balance in a reasonable time frame, perhaps by extending your payment period or adding a lower interest rate. If your credit card company refuses to help, find a solution at your credit card company’s website.
2. Try the credit recovery services of a credit counseling agency. They may be able to help you improve your credit rating, improve your credit history and keep you in your car finance agreements. 3. Try negotiating a higher monthly payment. You may have to consider a lower interest rate, which could be much cheaper than paying off your loan. In many cases, that interest rate will be more affordable than the cost of the monthly payment and will be less likely to cause you to default on the loan. If your credit card company will not help you improve your credit rating, seek the services of a credit repair organization, as they can help you get your credit rating back into good standing. If your credit card company does help you improve your credit, it is always in your best interest to take the money they give you and reinvest it into improving your credit score. If you do not, you will be more likely to pay more in interest.