Credit Card Payment Tips From 4 Pillars Victoria

Credit cards are not inherently a bad thing. In fact, with the correct use, credit cards can be an effective way to save money on some types of purchases. However, when consumers in Victoria use their credit cards incorrectly, the results can be devastating from a financial and debt point of view.

Ideally, credit cards should be used to purchase items that can be paid for in one billing cycle. This eliminates the buildup of interest on the card and helps to keep the actual cost of the item to the purchase price. Many people coming in to see a 4 Pillars debt consultant have made a large purchase on a credit card to save a few dollars on a sale and then pay hundreds of dollars in interest over years where the card carries a balance.

In addition to limiting purchases on the card to what can be paid off in a few weeks, 4 Pillars debt consultants also recommend the following tips:

• Make full minimum payments – at the very least, 4 Pillars recommend making the minimum payments on all cards. Ideally, adding even a few dollars more on minimum payments on small balances can make a big difference in total interest paid.
• Avoid partial payments – partial payments or only paying a part of the minimum payment required will hurt your credit score. It can also lead to costly fees and penalties in addition to increased interest rates and charges.
• Avoid skipping payments – skipped payments are also a negative mark on your credit report. Over time, these can dramatically drop your overall credit score.

If you are struggling with credit card debt, talk to our debt consultants in Victoria. Call us today at 866-690-3328 to schedule a free consultation.