Do you usually pay your bill off over a few months? Or do you often pay your credit card a few days late?
If you use your card like this you’ll be paying interest. Paying attention to the interest rate could really add up over time;
- When there are cards with an interest rate around 10%, why stick with one that charges around 20% per annum?
- If your unpaid balance is $3,000 each month, the difference in your interest bill will add up to $300 in just one year.
- Switching to the lower rate will free this money up to help you get on top of your debt.
Handy Tip
An interest free period doesn’t always mean no interest. Depending on the card, if you don’t pay your account in full by the due date, the interest free period does not apply.
Interest will be charged on both last month’s purchases and your current month’s purchases – until you next pay your statement in full by its due date.
As always, review the terms and conditions before applying for your chosen credit card. This information is a summary and provides general information that may not apply to every card.
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