Manage your Credit Card wisely and avoid Interest

Anytime you speak to someone about applying for a credit card, the usual warning is to be careful or getting caught paying it back on time.

Getting caught in debt is a terrible feeling. But even worse is knowing that it could be years before the debt is cleared. This is because the higher the debt amount, the higher the interest payment per month.

It is always recommended that you manage your credit card bills in a way where you pay the full outstanding so you avoid paying unnecessary fees. 

However, if you have a current balance and paying a high interest rate on it, then you are probably better off considering a credit card with a balance transfer offer allowing you to pay off your current card and transfer the balance on the new credit card at lower rates.

The offers could vary from 0% interest for 3 months or a low rate for 12 months.

While balance transfers generally come with a 0% interest headline, you need to be careful of the processing fee which is a one-time fee you would need to pay in order to enjoy the interest free period.

 Choose wisely and a balance transfer can save you a lot of money!

Best Balance Transfer Offers

Balance transfer in 8 easy steps 

1. Send the minimum payment to your existing credit card company by the due date. 
2. Sign up for new card 
3. Complete the balance-transfer form with the new card 
4. Whilst the balance is pending, continue to make your minimum payments by the due date to your old card. 
5. Receive confirmation of balance transfer to your new company, 
6. Call your old company to verify balance transfer. 
7. Receive a billing statement with zero balance from your old card company. 
8. Close your old account by calling or writing to the old card company. 

Tackling Your Credit Card Debt
Your credit card debt can easily get out of hand. Here are a few ways you can save yourself from such financial pitfalls:

• Take advantage of the best balance transfer offers: If you already have a big card debt, reduce your servicing costs by availing of the best balance transfer offer - see our comparison above.
• Convert you outstanding to an installment loan: Convert your outstanding to an installment loan spread over a tenor which you are comfortable with. Personal installment loan rates, especially if you transfer your salary to the Bank, can be less than half of the credit card rates. 
• Stop using your credit card for any and every purchase. If you want to clear your debt, you need to stop adding to it. Resist the temptation by leaving your card at home. 
• Consider reducing the credit limit to an amount you can comfortably afford to repay every month so you are not able to run up debt you cannot repay.
• Choose a credit card that you can access online . This will help you keep track of your credit card balance and how much you are spending.