You ever got a statement from one of your UK credit cards, and looked at the interest payment at the bottom line! You felt bad, right! You bought a new doodah… that cost a gazillion dollars!
So you decided to delay payment until next month or to spread the payments over several months, but you are still staring at the interest you had to pay! Now you feel guilty! You didn’t need to spend that money, did you?
Well, this post is to put the opposite point of view: to make you feel better! Because this may not have been a bad move for you to make! Let’s say you bought something you felt necessary for your house or life. For argument’s sake, your pc broke down, and you decided to buy a new one! So you spent $799 on a new DELL or HP portable!
OK. Let’s assume that for a general credit card interest rate of 19.50% (my previous rate) and I have to pay off 5% minimum each month with a $30 minimum payment. Then I’d pay $228 interest plus principal over 33 months. That’s pretty lousy rates.
Except: first, you pay off the loan much quicker than that, perhaps in only 3 months. Your interest paid would only be a little amount (about $30) and you don’t have to feel so bad.. You reduced your interest payment by nearly $200, you had your computer for your work for 3 months already, and your credit card is now clear!
If you know how to take advantage of your credit card, you may also find that in some 0% interest rate purchase deals that would you allow you a grace period for that 3 month period! Result: you’ve just reduced your interest payments to $0! Nice move.
You may even be able to find some cashback deals, if you are shrewd, that would PAY you either bonus points or cashback, moving you into something of a profit situation!
Credit card interest rates may be exorbitant but the revolving nature of the loan, the flexibility of how you spend it, and how you repay it; and also, the bonus points, cashback or 0% deals that you can get: all of these can make credit cards quite a valuable tool for you!
Keep your friends close; keep your credit cards closer!
Sponsored Post by CardGuide.