There is a credit term call grace period - it's a period within which you may pay your bill without being charged interest. It's usually a period of 25-30days before interest kicks in. Recently, most issuing companies are eliminating this grace period and instead offering a low fixed interest rate. The question now is - which one is better between grace period and low fixed interest rate?
It will be a bit difficult to have one answer that will favour everybody. Some prefer paying their bills in full within the normal grace period. To this group of people the grace period will be better. It will be advisable for them to shop for grace period cards and avoid no-grace-period cards.
Some banks do charge interest from the day they process your charge slip when you use your card to get cash. If you normally pay your bill in full you still need to shop for card that offers very low interest rate plus grace period, if you are to avoid interest charges on your account. However, for those that usually carry a balance each month, the low interest rate will be good for them. If you are in this group you can even shop for institutions that periodically offer cards with no fee for the first year.
Most issuing company often offers "premium" credit cards such as "goldcards" and Premier VISA. They are fancy cards that come with travel insurance benefit and extra protection when your card is lost or stolen. These institutions will rarely use the highly annual service fees which you will be subjected to as their marketing point. So it's advisable to beware of these cards. There is no reason for paying such high service fees. As a matter of fact it did not really worth it if you can have a lower interest or grace period card.
You may even find yourself making plans at some luxurious spa, to sample of their relaxing (not to mention, extremely costly) facials, massages or treatments. After all, you work hard and so you've definitely earned it since you've been stressed out all month long from your hectic schedule and tight deadlines.
Well there is hope so don't file those bankruptcy papers just yet. One major thing you have to keep in mind is your creditor is probably very willing to work with you. Its in their best interest to have you making some payment versus no payment. So here are a couple points to help you deal with your credit card debt.
The first thing you have to do is simply contact your creditor and let them know your situation. Ask for a lower interest rate or a repayment plan. You might not have thought of it because you're just naturally so polite but it’s a very good strategy to be courteous at all times when negotiating with your creditor. Polite, but firm. Come across as one who knows what you're asking for and expect to get it. If you're not sure what you're asking for in the first place you might consider a reputable credit counseling service. There's a lot of great, honest organizations out there whose mission is to help you work things out with your creditors.
Next you've GOT to stop using your cards. Cut them up, freeze them in a tub of water, whatever you need to do to get them out of your wallet or purse, do it! You simply can't keep adding to the problem by running the debt up any higher. This is actually one of the hardest parts of cutting your credit card debt. Its like you're addicted to spending money you don't have. So go cold turkey and drop the habit.
Start paying the ones with the highest interest rate first and work from there. How do you do that? Concentrate on those high interest rate cards by paying more than the minimum balance each month. The minimum is just designed to keep you on the hook longer anyway. The credit card companies are in this business to make a profit and want to have you paying them for years to come. Even a little extra each month makes a big difference in the long run.
Lastly, keep your chin up and have a good attitude. Millions of folks just like you have begun to cut their credit card debt by following the common sense steps outlined above. You can do it too. Good luck.
About the Author: Felix Adekola has a great free resource website, http://debtcontrolstartegies.com containing different articles on debt consolidation. Visit to find all the tools and resources you need to get started fast.
Both Masni Rizal Mansor & Felix Adekola Adekola are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Masni Rizal Mansor has sinced written about articles on various topics from Room Furniture, Debts Loans and Recreation and Sports. Masni Rizal Mansor provide tips and review on ,. Masni Rizal Mansor's top article generates over 74000 views. to your Favourites.
Felix Adekola Adekola has sinced written about articles on various topics from Credit Cards. Felix Adekola has a great free resource website, containing different articles on debt consolidation. Visit to find all the tools a. Felix Adekola Adekola's top article generates over 1000 views. to your Favourites.