Normally when we pay for a credit card, what we do is sign the payment slip attached with the credit card, attach our cheque to it and drop it in the drop box of the respective credit card company. This is what most of us do. Another way is to either to go to the bank and make the deposit in the bank or call the credit card company representative for payment of our credits.
Today, one way which is picking up the market is the use of Pay Pal. Pay Pal is one of the easiest ways of credit card payments. You just have to register yourself online and can get your transactions done online. No botheration of going to the bank, or the drop box or calling of the representative. Just pay your credit simply by sitting at home.
There is a budget billing concept coming in the market. In this, certain companies pay your bill on your behalf in cases where you are not in a situation to pay your bill. These companies then take the amount paid for you, by them after a certain interval of time - say, three months. You can also register your name for your credit payments. As, it is a up coming concept in India, how reliable are such companies or how much faith you can put on them, depends entirely upon you.
These are some of the ways which you can use to make your ; but, before you make payments there are certain things which you should keep in mind. Even if you do not have much money with you, always pay the maximum amount you can or pay the minimum amount which is printed on the credit card bill. Secondly, make round - off payments, this will make it easier for you to remember the amount you have paid. Thirdly, pay off the balances with higher interest rates first. Say, if you have two to three payments off, and there are certain which is incurring higher interest rate, then pay that one as compared to those incurring lower interest rates.
Keeping in view all the above said points, credit card payments should be made.
The first step is to review your monthly billing schedule. Here are a few important things you must be aware of:
Statement Date - This is the date the statements printed. Very likely it will be 2 or 3 days before your receipt of the statements.
Payment Due Date - This is the last day you must make payment. You must pay at least the minimum amount due to avoid late payment penalty
Together with the statement date, you can work out the grace period duration in case you are do not know this.
The next step is to understand the amount due.
Total Amount Due - This is the sum of any unpaid amount from the previous month and all new charge and interested incur for the current month.
Minimum Amount Due - This is a small percentage of the total amount due. The percentage varies from one credit card to the other but it is usually around three percent. This is also the amount you must pay to maintain a good standing with the card company and avoid late payment fee.
The third step is to understand your cash inflow date. For most people, this will be the day where they receive their salary. For some, there will be other sources of income such as part time business or property rental.
Once you have a clear understanding of your cash inflow and outflow, you can then plan your budget and expenditure accurately. In fact, you have gain an understanding whether you are having positive cash flow each and every month. If there are too many months where there are negative cash flow, you need to analyze your expenditure and do the necessary cost cutting measures.
Now, your objective is always to pay the credit card bill in full and on time. By knowing when your cash is coming in and going out, you have a good idea when you need to put aside cash for bill payment purpose.
Occasionally, you may need to carry a balance due to unforeseen circumstances such as medical fee because of a minor accident. In such cases, you should try your best to pay everything back in full the following month.
Both Heenu & Stephen Chua 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.
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