Save Money While Paying Off Your Debt

November 23, 2012

Avoid high interest credit card rates

Here are some ways to take advantage of your credit card’s benefits without getting stuck in a cycle of high interest debt:

  • Figure out the total amount of your credit card debt.
  • Call your credit card companies to find out if they will lower your interest rate – and by how much.
  • Make up a simple budget to see how you can manage debt and reduce it, rather than letting it continue to build.
  • Consider taking out a line of credit. These loans offer a lower interest rate, and you can use, repay and re-use them as often as you wish.
  • Set up an online banking account with your financial institution and make sure you have immediate online access to all your credit cards. This way, you can check and pay your balances immediately, without waiting until the end of the month.
  • If you use your credit card to get reward points, pay it off immediately through online banking.

These strategies are all easy ways to reduce the amount of interest you pay every month. If you stay disciplined, you could save hundreds of dollars per year.