Credit cards are a way to buy things now and pay later. The benefits of these cards don’t end here as introducing discounts and offers is a way to lure the customers. There are drawbacks of having credit cards with higher interest rates, and no control over spending can put you in debt. Eric Arnold Planswell has recommended ways that can help you manage the credit card debt:
Set Up Autopay: A survey was conducted by creditcards.com, which revealed that those who didn’t make credit card payments on time were charged a late fee of $40 every day. To avoid a late fee, set an autopay method, and the amount will be debited from your account.
Manage Credit Utilization Rate: One of the methods to calculate credit scores is the credit utilization ratio. Limit the amount of credit cards you spend. Eric Arnold Planswell recommends you keep the credit utilization ratio between 20 to 30 per cent. A low ratio informs the lenders that you know how to manage the credit card properly.
Get a Credit Card With Zero Annual Fee: Credit cards come with an annual fee(some companies waive them in the first year). A credit card with zero annual fee helps you save money and improves your credit score.
In Conclusion, Credit cards, when left unmanaged, can put you into debt. Implement these tips and use your credit card wisely. If you need assistance in managing your debt, consult Eric Arnold Planswell.
