Wednesday, October 10, 2007

Pay your credit card bills in full

I just received my credit card statements in the mail today and i'm not surprised to see that my spending has increased last month. I bought quite a lot of items for my family members as there were sale everywhere. One of the biggest purchase was a 4 door Hitachi refrigerator for my mother-in-law. Our old fridge was leaking and it's time to replace it. So, i surprised her with a new one since i've earned a lot the past few months. Moreover, i can pay for it in interest-free installments and the monthly repayment is affordable too.

I have habit of paying all my credit card bills in full. If not, i will have to pay a very high interest rate of a minimum of 1.5% per month. It may not seem a lot if you have a small amount to repay. But if the outstanding amount comes to a few thousand bucks, the interest can be substantial if i pay only the minimum amount per month on my bills. With the interests accumulated over a few months, that's enough to pay for a brand new item. So, it pays to settle all outstanding amount on time and in full. Those who have the habit of paying only the minimum amount may find that they will need Debt Consolidation Services or Credit Card Debt Elimination services one day.

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