I was thinking the other day about the credit cards and how they charge interest. The thing is they tend to charge interest daily off of your balance. Now I found a Neat little trick of figuring out the daily interest charge. Then you just pay that plus a little bit extra each day and it knocks down your payment quickly and reduces the amount of interest you pay!
I have never been charged any interest at all on my credit card! I get 1 bill a month, when it comes in, I pay it off. Thats it. Do some companies charge daily interest?
The only thing about what you are saying is that you are largely paying interest rather than focusing on saving up some money and paying off your credit cards. I understand what you are trying to say and know that it isn't always easy to just "pay things off"; but I think you should really start focusing on saving up some money and getting rid of them! We have some credit cards that we use for gas and groceries, but we pay them off when the bill comes so that we help our credit score; but we don't end up paying a lot of needless interest.
I learned when I was 18 that credit cards are bad news. The thing I hate most about them is they drag out the payments. They seem like they go on forever. I had a credit card company tell me, they don't want me to pay off my debt. They would prefer that I keep an ongoing payment to show that I have good credit. I thought that statement was ridiculous, and I just paid them off anyways. Most credit card companies will show you a high credit amount as a teaser, and they'll slowly reel you in with all the perks. By then it's too late, and you're stuck paying a high monthly bill with interest. Thanks, but no thanks, I'll stick to paying my bills on my own. No more help from the credit card company.
Yes, they charge daily interest if you do not pay off the balance each month. I am talking about they charge .81 cents a day as an example and you pay a buck a day. This helps pay the principal down by .19 cents a day, but also pays the interest for the day. Then when you get your billing statement they cannot charge interest. The interest is compounded on top of the daily balance. So if you are charged interest on day one then that new balance is charged interest on day 2.
So are you actually making a payment every single day? That seems like it'd be a huge hassle. While you might be saving a little bit of money, you could do the same by simply paying a larger sum every week. As others said, it's even better if you can focus on paying it off entirely, but hey, baby steps, right?
IF you put stuff on your credit card and pay it off at the end of the month you shouldnt' be getting charged intrest. Interest is only charged on the balance that carries over to the next month. Credit cards ARE bad news if you don't use them wisely. Used wisely though they can be great.
Yes, like Making said the credit cards are bad news. If you do not use them right they are terrible and can cost a fortune! However, when used properly they are a good thing to have and a great way to get some rewards points!
I pay my card off every month as well. I never pay any fees or interest. Its the only way to go. If you can't pay it don't charge it thats my motto.
