Always Pay More Than The Minimum Balance (Credit Cards in general)

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Product:	Credit Cards in general
Date:	25/08/02 (37 review reads)
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Advantages: You will pay less interest

Disadvantages: You have to pay out more each month

This advice is short and sweet, but applies to anybody paying the minimum required payment on their credit card! This advice will make you better off in the long run!

APR = 17.9% on a typical card, minimum payment is usually 2% of the outstanding balance.

Even if you never use your card again, it will take you 38 years to clear the debt! I kid you not! This is great for the banks, but do you really want to be paying this debt off as you enter retirement? Students - you could be a Grandma before that debt's gone unless you manage it down! Please make sure you work your debt down quicker than this!

Rules:

1. Swtich to a cheaper card NOW! Flat rate cards at Cahoot, Intelligent Finance and Halifax are among the best at this moment in time. Rates around 8%-10.9% from these three at the time of writing!

2. Always pay more than the minimum balance - ideally pay the balance in full. Paying 5% or more of the outstanding balance should clear the debt within 2 years, 10% within a year.


Stick to the rules. Keep debt down. Richer you. Poorer banks!

Then, when your debt is nil, switch to a cashback card, pay the balance in full every month and make money for yourself!

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