Saving Money When Using a Credit Card

Families that mismanage their debt often find they endure large amounts of stress. In fact, financial stress is what causes many families to separate. This is very sad, mostly because financial stress can be lessened or eliminated if a family goes about managing their debt in appropriate manners.

Many families turn to utilizing credit cards when it comes to paying for expenses, whether they are emergency expenses or everyday expenses. While using a credit card to pay for everyday expenses should not occur, it sometimes does, making it very important to know how to save money when using a card.

With so many families in debt for so many different types of expenses, it only makes sense that they are looking for ways to save money when using their credit cards. Many families that have student loans to pay off will even use their credit card to consolidate a large part of their debt into one low monthly payment; this has proved beneficial to many families. Adhering to the following tips has helped many families save money when using their credit cards.

Have One Credit Card Set Aside for Emergencies

Of course, it is most wise to have a stash of cash set aside to help with emergency expenses; however, it is also smart to have a credit card with a low interest rate that is set aside to be used only for emergency expenses. This credit card should never be used for other purposes, as this will allow for a family to have access to funds when an emergency does occur.

Watch the Rewards

Some families opt with using a credit card so that they can obtain reward points. The only problem with credit cards that provide reward points is they are usually accompanied with high interest rates. Many times, a family can save money using their credit card by having one card that they charge all of their daily expenses to; this allows them to rack up reward points, but in order for this to be effective they must pay off their balance at the end of each month.

Compare Credit Card Rates

Families should always search around and compare different credit card rates. The easiest way to shop around for credit card rates is to do a quick search online. Obtaining the lowest interest rate possible on a card will enable a family to save a significant amount of money.

Read the Details

All credit cards are accompanied with terms and conditions. A family should always thoroughly read through the terms and conditions of any credit cards they apply for. Reading through the terms and conditions will allow a family to see their true interest rate, as well as what the interest rate and penalty fee are when a payment is missed.

Better Rates are Obtainable

Many families will find that after they have had a credit card for several months, and after they have made all their payments on time, they can ask for a better interest rate from the card insurer, and most times, they will receive a better rate. Not only can a better interest rate usually be obtained, but an increased spending limit also.

Always Pay off Full Balance

No family should ever leave a balance on a credit card for an extended period of time. They will find the interest rate adds a large amount of debt to their initial purchase amounts. It is best to always pay off a credit card’s full balance at the end of each month.

Avoid a Missing a Payment and Taking Out a Cash Advance

The number one worse thing to do on a credit card is to miss a payment; this is usually accompanied with a penalty fee and a higher interest rate being implemented. Missing a payment also leaves a blemish on a family’s credit report.

It is also not smart to obtain a cash advance on a credit card. A cash advance is accompanied with an extremely high interest rate. Also, when the family goes to pay off the cash advance, they will find they must pay off the entire balance of their credit card debt before any money can be applied towards the cash advance.
About Rachel

Rachel Akers writes about crafts, recipes, and features the adventures of a family of 4. It is always crazy but I wouldn't change it for the world! Comments or questions? Talk to me on Facebook or Twitter or sign up for our RSS feed to have future articles delivered to your feed reader.