Following this 1 credit card move saved me thousands


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Avoiding credit card interest has done wonders for my finances over the years.

Key points

  • Interest on credit cards can be extremely expensive.
  • If you are able to pay your balance in full each month, you will never have to pay a penny in interest.

There was a time when I didn’t trust credit cards at all. I thought they were just a sneaky tool used to cheat consumers with their hard earned money.

But then I did some research and realized that with the right strategy, you can get a lot of credit cards without losing a penny in interest. All you have to do is pay your balance in full each month. That’s it.

In fact, this rule alone has saved me thousands of dollars over my lifetime when I think about the various expenses I’ve accrued, from vacations to home repairs to furniture purchases. But while the concept may be simple to follow, there’s more to the story than that.

How to make sure you never have to pay interest on your credit card

If you promise never to charge a credit card more than you can afford to pay off in full by the time your bill comes due, you won’t have to worry about accrued interest. It’s so simple. A good way to make sure you’re not going overboard is to check your credit card balances on a weekly basis.

This is something I do, as I confess to having, on more than one occasion, forgotten what my expenses look like from week to week. Keeping a close eye on these growing balances lets me know when it’s time to cut spending until the next billing cycle.

While exercising self-control can help you avoid racking up credit card interest to some extent, you’ll need to do more than that. Often people end up with credit card balances that they can’t pay off, not because they’re spending too much on frivolous things, but because they’re hit with unexpected bills that they don’t. don’t have the money to cover.

Besides pledging never to have a credit card balance, another way to avoid paying interest is to have a fully loaded emergency fund. This way, if unexpected expenses arise, you won’t be forced to pay them back to your credit cards over time. Instead, you can just dip into your savings to take care of it.

Personally, I like to keep about a year’s worth of expenses in the bank, but that might be more than you should be aiming for. You can usually get by with three to six months of living expenses in savings for good protection.

Don’t avoid credit cards for fear of paying interest

Once you have credit card debt, you could end up spending thousands of dollars in interest over your lifetime. But if you’re able to avoid carrying a balance, you can enjoy the many benefits of credit cards without losing a penny of your money in interest charges.

I’m really glad I learned the benefits of credit cards and how to manage them. Over the years, I’ve not only avoided getting paid interest, but I’ve also racked up thousands of dollars in rewards points and cash back that have come in handy for a variety of purposes. If you play your cards right, you could do the same.

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