After this 1 credit card move I saved thousands

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Avoiding credit card interest over the years has worked wonders for my finances.

  • Credit card interest can be extremely costly.
  • If you can pay off your balance in full every month, you never have to pay a cent of interest.

Check out the best The Ascent credit cards for 2021

There was a time when I didn’t trust credit cards at all. I thought it was just a clever tool used to defraud consumers for their hard-earned money.

But then I did a little research and realized that with the right strategy, you can get a lot of money off your credit cards without losing a cent on interest. All you have to do is pay the balance in full every month. That’s all.

In fact, this rule alone has saved me thousands of dollars over the course of my life when I think about the various expenses I’ve accumulated, from vacations to home renovations and furniture purchases. But while the concept may be simple to understand, there is more to the story.

How to ensure you never have to pay interest on your credit card

As long as you commit to never charge your credit card more than you can afford to pay off in full by the time it’s due, you don’t have to worry about charging interest. It is so simple. A good way to make sure you don’t overdo it is to check your credit card balance weekly.

I do this because I admit that I have forgotten more than once what my expenses look like from one week to the next. Keeping a close eye on these escalating balances lets me know when to cut costs before the next billing cycle.

While self-control can help you avoid increasing interest in your credit card to a certain extent, you need to do more. Often times, people have credit card balances that they cannot pay off, not because they spend too much on frivolous things, but because they fall into unplanned bills, they have no money to cover.

In addition to the obligation to never keep a credit card balance, another way to avoid paying interest is to have a fully loaded emergency fund. That way, if there are unexpected expenses, you don’t have to pay them off with your credit card over time. Rather, you can simply dip into your savings to take care of them.

Personally, I like to keep expenses in the bank for about a year, but this may be more than you need. Typically, for good protection, you can save three to six months of your living in savings.

Don’t avoid credit cards for fear of paying interest

When you find yourself in credit card debt, you can end up spending thousands of dollars in interest over your lifetime. But if you can manage to avoid having a balance, you can take advantage of the many benefits of credit cards without losing a cent of your money on interest payments.

I’m really glad I learned about the benefits of credit cards and how to manage them. Over the years, I have not only avoided accruing interest, but have also accumulated thousands of dollars in bonus points and cashback, which have come in handy for various purposes. If you play your cards correctly, you can do the same.

The best credit card will destroy interest in 2023

If you have credit card debt, transfer it to this transfer card with maximum balance guarantees you 0% per annum in 2023! Plus, you won’t be charged an annual fee. These are just a few of the reasons why our experts rate this card as the best choice for managing your debt. Read the full review of The Ascent free and apply in just 2 minutes.

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