Discover Debt Freedom!

In anticipation of stricter regulation of credit card products by the federal government, many credit card issuers are increasing the interest rates, fees, and other charges associated with using the credit cards in order to “beat the clock” on regulation.  While this may help the credit card issuer’s bottom line, it is hurting the large number of individuals that are carrying a balance on their credit cards by snagging a larger portion of their income for paying down the credit card balance.  If you are finding that you are paying far too much in credit card fees, here are some simple ways to bring down the amount.

Minimize Credit Card Use
Although many credit card issuers offer rewards for increased usage of the credit card, using a credit card for routine purchases can be a recipe for disaster.  These rewards can entice individuals to use their accounts to pay for more items more often, creating a higher balance on the account that will be subject to fees and interest payments.  It is smarter for the person to use the credit card as infrequently as they can and to pay cash for small everyday purchases to decrease the amount of the balance of their credit card.

Make Sure Payments Are Timely
Making a payment on the credit card late gives the credit card issuer many different opportunities to impose fees on you.  The first fee charged against the account will be a delinquent payment fee, which could be as high as $39 for each occurrence.  This charge can be added to the account by the credit card issuer even if the payment is only a few hours late or is delayed in the mail.  If the delinquent payment penalty fee increases the account balance to the point where it is over the credit limit, the credit card issuer can justify charging an over-limit fee to the balance of the account, which adds another $39 fee to the total balance.

Avoid Interest Rate Increases
Many credit card issuers use any missed payment to dramatically increase the interest rate for the account to the highest allowable limit, which could be as much as 30%.  To avoid these tactics and extortionate fees, a person should make their payment for the credit card as soon as they receive the bill to make sure that the payment will be received on time.  Many credit companies have an option where you can pay your bill online, which posts the payment to the account by the next day.  When the transaction has been completed, you will receive a receipt indicating that the transaction has been processed and that posts the date that the payment will post to the account.