Credit Card: Tips to avoid interest charges on credit card spending

Credit card payments have become an essential part of routine payments for many card holders. Due to the convenience and credit facilities associated with the credit cards many users are increasingly using credit cards for various transactions. It is also not wise to spend carelessly with credit cards as it is one of the easiest ways to land in a debt trap, and further getting out of this trap can be very time-consuming and expensive. One must repay the credit card bill amount in full every month to avoid unnecessary fees and extra interest charges.

Whether the credit card interest rate is higher or nominal, not paying the full bill amount may lead to extra charges. Making minimum payments will increase the interest charges as the card issuers calculate interest rate on the remaining balance from the date of transaction.  

If you are also worried about paying such huge interest on credit cards and want to get rid of them, here are a few things that you can do to reduce the burden of interest.

Tips to avoid interest charges on credit card

1. Pay your bill in full: Most credit cards come with a grace period that is at least 21 days starting from your monthly statement date. In this tenure, one can pay their full balance without incurring interest on their purchases. It is to be noted that even if a small balance is carried off to the next month, the cardholder will lose their grace period on new purchases. Thus, the credit card spends will start accruing interest immediately.

2. Avoid cash advances: Unlike the case of new purchases, cash advances don't come with a grace period. Besides that, the annual percentage rate, or APR, on cash advances is also higher than what you will need to pay for new purchases.

3. Use balance transfer: A larger balance on the credit card will take a longer time to pay off the dues. If planned right, one can move their balance to some new card and pay off the full balance without paying extra interest.

4. Consider the introductory zero per cent APR Promotion: Those who have major expenses in the future can apply for a credit card that comes with an introductory zero per cent APR promotion. These promotions help to carry forward a balance month-on- month without having to worry about the accrued interest. However, as the promotional windows last for a certain period, cardholders will be charged interest after the stipulated offer period.

While credit cards come with a range of benefits one has to also remain aware of certain drawbacks that come with credit cards. One should remain cautious of the same and make purchases accordingly.