Dealing with Finance Charges?
Although there are benefits of using a credit card there can also be drawbacks, such as dealing with finance charges. If you are facing finance charges and are tired of this there are a few things you can do.
First off, never carry over a balance. Remember, you will not face finance charges unless you carry over a balance from one month to the next. So if you always pay off your credit card in full you will never see an additional charge on your statement. How would that make you feel?
Secondly, if you have a large balance and finance charges are killing you it may be time to look into a balance transfer. If you have a good credit score you may be able to transfer your entire balance from your current card to a new one with a lower interest rate. You may even be able to take advantage of a zero percent offer. This would give you the opportunity to forget about finance charges for the time being and concentrate more on paying down your debt.
Finance charges are based on the balance you are carrying and the APR attached to your card. While finance charges are a way of life for many people, if you know what you are doing you can control your situation to a certain extent.
Don’t become one of the many people who waste thousands of dollars each year on finance charges. Instead, consider cutting back on your balance and securing the lowest possible APR. By doing these two things you will find it easier to eliminate or deal with finance charges.
December 9th, 2008 at 8:53 am
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