Legal Ways to Avoid Having Your Credit Card Bills
Most people look at credit cards as expensive financial tools. With the interest rates not getting any lower, you can just imagine being knee deep in debt simply because you charged an amount you cannot afford. Credit card bills or card statements are what you receive at the end of the billing period. It contains the amount you owe, the schedule or the deadline of the repayment, the required minimum payment, and the interest that you may accumulate if you don't pay your balances.
In truth, you cannot escape your bills. However, you can avoid having high amounts in your monthly statements in two legal ways. The first is to dodge the interest fee and the second is to evade the finance charge.
Why Avoid Interest
Interest rates or APRs are added to your balance if you don't pay your card in full. If you pay the interest, you are, in essence, paying for the expediency of balance repayment over a certain period of time. Hence, you are required to pay more than the amount you borrowed. The result is that you have less money for your other expenses, which makes it difficult for you to reach your financial objectives.
The interest rate goes higher if the balance continues to grow. The longer you avoid paying your debt, the higher it gets.
Eliminate Interest Legally
You can ask for a reduction in your APR if you really can't pay for your balances in full each month. The Interest rate, though, cannot be eliminated even if you beg for it. The only way to get rid of it is to pay your balance in full each month. It is simple in theory, but it is often difficult to carry out. Nevertheless, it is advised that you keep paying until the end of the card's grace period. During this period, you typically have 21 to 27 days before the interest racks up. Often, only purchases have a grace period. Other transactions like balance transfers and cash advances don't apply.
Why Avoid Finance Charges and How to Legally Do It
The finance charge works almost the same way as the interest rates. Most companies implement a huge finance charge on delinquent accounts. Even if you pay the minimum payment, you may still be charged a high fee for not paying your balances in full. Finance charge typically includes late fees, cash advance fees, over the limit fees, and annual fees.
The best way to avoid the finance charge is to pay your balances in full. If you don't, you will see that the amount you owe will be much higher on the next billing period. You cannot avoid the finance charge if you already have a balance at the start of the billing cycle. This is because the grace period only applies when you have your paid all your previous balances.
Paying for the minimum may appear like a bargain, but the long-term price of the strategy can be overwhelming. Always pay off your balances in full every month to avoid both the interest and the applicable finance charge.
In truth, you cannot escape your bills. However, you can avoid having high amounts in your monthly statements in two legal ways. The first is to dodge the interest fee and the second is to evade the finance charge.
Why Avoid Interest
Interest rates or APRs are added to your balance if you don't pay your card in full. If you pay the interest, you are, in essence, paying for the expediency of balance repayment over a certain period of time. Hence, you are required to pay more than the amount you borrowed. The result is that you have less money for your other expenses, which makes it difficult for you to reach your financial objectives.
The interest rate goes higher if the balance continues to grow. The longer you avoid paying your debt, the higher it gets.
Eliminate Interest Legally
You can ask for a reduction in your APR if you really can't pay for your balances in full each month. The Interest rate, though, cannot be eliminated even if you beg for it. The only way to get rid of it is to pay your balance in full each month. It is simple in theory, but it is often difficult to carry out. Nevertheless, it is advised that you keep paying until the end of the card's grace period. During this period, you typically have 21 to 27 days before the interest racks up. Often, only purchases have a grace period. Other transactions like balance transfers and cash advances don't apply.
Why Avoid Finance Charges and How to Legally Do It
The finance charge works almost the same way as the interest rates. Most companies implement a huge finance charge on delinquent accounts. Even if you pay the minimum payment, you may still be charged a high fee for not paying your balances in full. Finance charge typically includes late fees, cash advance fees, over the limit fees, and annual fees.
The best way to avoid the finance charge is to pay your balances in full. If you don't, you will see that the amount you owe will be much higher on the next billing period. You cannot avoid the finance charge if you already have a balance at the start of the billing cycle. This is because the grace period only applies when you have your paid all your previous balances.
Paying for the minimum may appear like a bargain, but the long-term price of the strategy can be overwhelming. Always pay off your balances in full every month to avoid both the interest and the applicable finance charge.
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