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Credit Card Secrets - Tips on Budgeting Part Two

By: Brandon Schmid

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In my previous post I discussed that there are many secrets that credit card companies don't want you to know. There are plenty of tips on budgeting out there for you to pick from and many ways that you can avoid user fees and pay little to no interest on purchases. You as the customer have the choice to let your credit card work for you. Here are a few more exciting credit card secrets that will offer you a great deal of personal finance help.

Two-cycle Billing

This is one other way that credit card companies will attempt to get more money from you and many people don't even realize that two-cycle billing exists. In short, issuers will calculate an interest charge that is two months of interest if you were unable to pay off the balance in full. It seems like a nasty trick but you are borrowing their money after all. This problem only occurs if you switch from paying on time all of the time to carrying a monthly balance. The tips on budgeting I'll offer to rectify this problem is to switch to a new card issuer or ALWAYS pay your balance in full.

Fees Are Negotiable

Some cards charge service fees of $50 per month or more. The question you need to ask yourself is if paying a fee is actually worth the 'privilege' of using that particular card. Some companies also make you subject to pay finance charges of over 18%. The solution to this problem is easy to solve. If you are a good customer, your bank may be willing to drop the annual fee or reduce the interest rate or both. The only way you can make this work is if you go in and ask. If that doesn't work switch to a new credit card company.

Shortened Due Dates

The most common grace period for credit cards is 25 days. You have this amount of time to pay for your purchases or you will be subject to high interest rates. Some banks have started to offer shorter grace periods of just 20 days - but only to those customers who pay in full every month. This is fine if you like the thought of the 20 day grace period. If you are less than thrilled about that idea the easy fix is to talk with your bank and they will probably switch you back to the usual 25 days. If they are unwilling to fulfill this request it may be time for a change.

For every issue there is a remedy when dealing with your credit cards. You as a customer have the right to negotiate annual fees and interest rates. Someone will want your business and will make sacrifices to make you their customer. Hopefully this list of options offered you the personal finance help you deserve. For more tips on budgeting, look through my blog to receive the free E-Book, free budget spreadsheet, free calculators and links to various tools. We also have a few leaked videos to help with your finances.

Until Next time,

Brandon

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You can pay off your debts and save money at the same time! Say goodbye to your boss forever! A blog that will show you the secrets of the wealthy: www.howtomanagemoneytips.com Get a free budget sheet, net worth calculator, tools and more: www.howtomanagemoneytips.com/social.html

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