Money management requires that you take wise and timely decisions. These decisions are immensely important and legion thereby making them difficult to prioritize. It is imminent that borrowed money comes at a price i.e. it has high interest rates clinging on to it. In the beginning it may seem as if borrowing money at lower rates is blessings but beware of the high interest rates that are piling up. This indubitable reason gives us enough reason to want to avoid paying high interest rates on our rewards credit cards.
Low-interest debt against your credit card doesn’t pose much harm for you especially if it’s an investment on your home or education. Contrary to this, high-interest debt has never been and will never be favorable for you. Kicking a few destructive and ill-formed habits will be worth it in the end. By this point, you’ve already decided you want to avoid paying high interest rates on your credit card but the question remains – where do you start?
Steps to Avoid High Interest Rates
Condense the monthly bills
Carefully go over and revise all of the services you’re availing for which you pay a regular bill. These include telephone / mobile services, cable services etc. For example, if you use a mobile phone as your primary source of telephonic communication, you might want to cut off the landline. If you cut down on the regular monthly expenses it will mean that you have greater amount of money to reduce interest payments. For more examples, click here.
Review your bank statements
In the process to avoid paying high interest rates on your credit card, you will want to review your bank and credit card statements. The purpose of this is to identify unnecessary investments. When you are on a mission to pay off the old debt that you have acquired and to avoid any further debt, then you will see that a lot of your routine indulgences can be avoided. For example, avoid going out for dinner at a fancy restaurant every weekend.
In order to actually save a considerable amount of money you will have to be completely willing to avoid paying high interest rates on your credit cards. That’s not all though – you will have to force yourself to save audaciously which will be rather troublesome in the start depending upon your current lifestyle.
Once you’ve saved some money the first month, add it all up and calculate how long it will take you to be free of debt. Reward yourself from time to time to keep yourself encouraged. Once you have a destination to reach in mind, reaching it becomes easier.