Jul07
The Five Best Tips for Managing your Credit Card Balance
In an ideal world, we would all have a zero balance on our credit cards. Although this is certainly something most consumers would like to aim for, the reality is that most individuals carry a credit card balance. In fact, recent statistics show that the average credit card balance for an American household is $8,000.
Instead of simply listening to financial advisers tell you that you should pay off your credit card balance, it may be best to start with strategies for managing the balance you currently have. The truth is that most of us would prefer not to have a credit card balance, but because this may simply not be reasonable for some individuals at this time, arming them with the tools necessary to handle their credit card balances may be a more logical step in the credit card process.
1. Check the due date – every time.
It is important to remember that the credit card company can change the due date at any time. The credit card company may also shorten the length of time in which you have to pay your credit card bill, so always check this due date every time you receive your monthly credit card statement.
2. Pay far enough in advance to account for processing and mail delivery.
Don’t get caught with late payment charges because your payment didn’t make it in time. Instead, always allow at least a week for your payment to arrive to your credit card company when sending it through the US Postal Service. Add a day or two if a holiday is approaching, as well.
3. Consider online bill payment services.
If sending your credit card payment through the postal service makes you nervous, then consider online bill payment services. Many credit card companies have this service on their website and you may also pay your bill through your bank’s online bill payment service.
4. Always pay at least the minimum.
Regardless of your budget or financial position, it is imperative that you always, at the very least, pay the minimum balance on the credit card. It is simply not worth a damaged credit score and credit card fees.
5. Pay more than the minimum, when possible.
First, the bad news: you will get nowhere fast paying just the minimum balance every month. Now the good news: if you pay just a small amount more towards your credit card bill each month, you could enjoy saving hundreds, if not thousands, of dollars in interest payments over the years.
