Frugal Tip 30:- Credit Cards

Earlier this year, I started posting a more in depth look at each of the frugal tips. Over the next few weeks I will publish the frugal tips that I have collected. Please note that not every tip will work for everyone. Chose as many of the tips that will work with you and your family and start implementing them. Today we will proceed with Tip #30 get rid of your credit card with annual fee.

If you are paying annual fees on your credit cards; you are wasting money. Stop it. Get rid of any cards that charges an annual fee. In fact why not do one better. Get rid of all the credit cards all together. The interest charged on credit cards are horrible. So just get rid of them all. Why would you pa twice, maybe even three times the asking price for that bag of new clothes (or whatever). Yet that is exactly what you are doing when you buy on credit. You buy lets say $100 in new clothes then you pay the minimum payment on that credit card. By the time you pay it off the interest has combined to charge you an additional $100-$200. What a waste. Instead plan ahead. Save a little bit of cash each month in a savings account and pay cash from this savings when you need to buy clothes. You will save money, plus you will earn any interest yourself because you are keeping the money in a savings account. Isn't that better then paying interest?


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