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Home » Business And Finance Articles » Stop Wasting Money Each Month On High Credit Card Interest Payments

Stop Wasting Money Each Month On High Credit Card Interest Payments

Do you know what your credit card is truly costing you and how to lower credit card interest rate? Many people assume that they do, but aren't familiar with the hidden fees that many credit card companies are charging.

In fact, if you don't keep close tabs on your credit card, you may end up paying hundreds of extra dollars per yearâ€"without ever really knowing it!

And if you're trying to budget your money, those hidden fees can add up!

Let's take a look at some of the most common credit card fees, and then talk about how you can avoid them.

Grace Periods

In the past, we could always count on grace periods before we ever had to start paying interest. For example, if we charged our card to the limit, and could get it paid off before the grace period expired, then it would be like a free loanâ€"we wouldn't have to pay any interest.

Unfortunately, the credit card companies are making this harder and harder to do. For starters, many of them have reduced the traditional 30 day grace period to 20-25 days. If you hold a credit card, but didn't realize this, then you're likely paying interest without even knowing it!

What's worse is that more and more credit card companies are eliminating grace periods altogether. That means if you charged lunch today at noon, at 12:01 pm, you would be already paying interest on it.

How about your credit card? You need to take a close look at the fine print and find out what kind of grace period you have. If your credit card company has reduced it significantly, or eliminated it altogether, you should seriously consider canceling it and getting a more user-friendly card.

Late Fees

When is the last time you checked to see what amount your credit card company charges you for a late fee? The truth is that these fees have doubled in just the past ten years, and that, combined with the reduced grace period, means that the credit card companies are raking in a lot of dough on late fees!

If it's possible, you should try and send off the check (or electronic transfer) the day that you receive your credit card bill. There are three reasons why it's important never to be late.

The first is obvious; you will want to do everything in your power to avoid a hefty late fee. Next, if you are late, it will likely be reported to the credit agency and you will have a bad mark on your credit report. The third is the direst, and we'll discuss it below.

Interest Rate Hikes

Did you know that if you are late--even one timeâ€"on your credit card payment, the company will in all likelihood raise your interest rates? That's right; one late payment gives them the right to do it.

What's more, that isn't just limited to your credit card payment. Any late payments from any lender that show up on your credit report gives them the justification to raise your rates, so be careful!

Why continue to pay high charges and interest rates at 15-20% when it is so easy to find 0 interest rate credit card offers for periods of 12 months for balance transfers and purchases.

Not only can you find a 0% apr introductory offer, but you will also find cards that include reward offers. Most people are aware of the air miles reward offers, but you can also find cards with rebates for gas and supermarket purchases and a host of unique product offers.

It is crazy that we can continue to waste huge amounts each month on interest payments. I suggest that you take action today to get a grip on your credit card charges.

And here is another random article you might be interested in...

Prepare to Sell!

Sales is a critical part of any business, including non-profits. Sales is not complicated or difficult, but requires preparation, consistent action and a plan. Before completing any preparatory work in sales, consider asking yourself some tough questions.

1. Why are you in this business?
2. Do you believe in your product/service?
3. What are you trying to accomplish?

When you believe in your product and understand why you're doing what you're doing, the rest of the sales process is much easier.

The first step in the plan is for the salesperson to know the features and benefits of the product or service (let's say product). For example, let's say your product is office furniture. Describing the features of your product and your company might look like this:

• Been in business 18 years
• Lots of variety â€" including home office
• Free delivery
• All price points
• 7 day guarantee

While features are very important, it's even more important to identify the benefits of your product. This process involves more thought â€" you need to put your feet in your customers' shoes and ask, "What's in it for me? (wiifm)" For example, "Why should I care if you've been in business 18 years? How does that help me?"

To fully understand the benefits of your product, first list the features, and then answer the wiifm question for every feature. There are no rules for this exercise and there will likely be more than one benefit for some features. Getting back to our office furniture example, here are some benefits:

• Longevity â€" we'll be here for you when you need us. We will remember you! You don't even have to come into the store when you need something. Bottom line â€" a relationship, convenience and peace of mind.
• Variety â€" one-stop-shopping. No matter what you need, we have it or we will get it for you. We save you time.
• Free Delivery â€" save you money.
• All prices â€" you will not be disappointed. When you come to our store, you will find what you want within your budget! We save you money and minimize stress at the same time.
• Guarantee â€" If it doesn't fit or doesn't look good, we'll take it back â€" no questions asked. This gives peace of mind and freedom in making your decision.

If you get stuck determining the benefits, ask your customers! Why did you buy from us? If the answer is vague, be willing to go deeper and deeper until you get something tangible. For example:

• "I bought from you because I liked the furniture."
• You go further â€" "What did you like about it?"
• "It matched my existing office furniture."
• "So, you appreciated the variety we offer? Did you look anywhere else? What did you find there â€" good and bad? Were there any other reasons you bought from us?"

This may be stressful for you, and you may feel like you're bugging your customers. Again, put your feet in your customers' shoes â€" do you think your customers want you to succeed? If your vendors called to ask you to help them, would you? If you're still uncomfortable, offer an incentive or gift to customers who help you to do this research.

Another way to define benefits that are important to your prospects is to determine their needs and define their problems. By fully understanding your potential customers' needs and problems, you can better give them what they want. Sometimes your prospects don't fully understand their needs and problems, so doing this research in advance and being prepared with this information, you can help them even more.

Now you can talk to anyone about your product!