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Pay Zero Interest on Your Credit Cards, Save Your Money
If you want to pay Zero interest on your credit card every month then here's a little trick many good accountants use. There is a catch however, the catch is that it requires a little bit of discipline but you don't have to pay your credit card bank a single cent by following these simple steps. This is the information that the financial providers don't want you to know as they want you to pay interest, it's where they make their money.
Every month your credit card provider will send you a monthly statement letter, this statement shows what you have spent and what the minimum amount they require you to pay them is on the due date. Usually the amount you have to pay back is around $40 or some percentage, say 2%, of what you have spent on the card, the bank will charge which ever is higher. Now say you have spent $1,440 and the minimum monthly payments is $40 or 2%, which is $28.6, your monthly statement will state that you need to pay $40 on the specified date. But wait a minute you spent $1,440 and you only have to pay back $40 this month? Sounds good doesn't it but "this month" is the keyword.
Because you only paid $40 instead of paying back the full amount you spent you will start to pay interest (perhaps 15% depending on your provider) for the next month on the $1,440 minus so the $40 you paid back, so you'll be paying 15% interest on $1,400 everyday for the next month, until the date on your next statement, this is what the banks want, they don't want you to pay them back! How much is 15% of $1,400 for a month (30 days), it's $17.7 so this amount goes on top of your $1,400 by your next monthly statement, so even if you dont' spend anything on your credit card for the whole next month you will owe $1,417.7. So if you spend more on your card it could be worse for you.
Since you are only required to pay $40 on the next months due date then essentially you have only paid back $40 - $17.7 (from last months interest) = $22.3. Basically the banks want to slow down the rate at which you pay them back because in the long run they are making money off interest from you every month.
Now the trick to paying Zero interest is to make sure you are able to pay back the full $1,440 on the monthly due date, so your credit card balance is zero! The bank won't earn a cent, it requires a little budgeting for yourself making sure you don't over spend but if you do then it's more money in your pocket and not the banks as you haven't paid any interest. Use your credit card for every purchase as much as possible as you can often earn reward points, and use these in exchange for cash back prizes or discounts at particular stores, again more money in your pocket. Just make sure you can pay back the full amount you have spent on the credit card monthly due date. It's that simple! Save your hard earned money.
You can find a low interest card here
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