Americans paid $130 billion in credit card interest and fees in 2022, according to a new report. Here are three strategies to help limit those charges.
I always keep a negative balance on my credit cards (no annual fees)
I pay soon after making a purchase, way before my monthly bill
I will use the money anyways so I overpay/overfill my credit card just before a long spendthrift holiday or vacation
I have my own ledger (hledger) to keep tabs on all my purchases and where the money is going, therefore the monthly credit card statement is just a sanity/balance check of my own ledger
have never payed any interest ever
Credit card are great for the extended insurance, travel insurance, rewards, cashback, etc… but only if one never pays interest and keep a positive balance.
Otherwise, I pay my regular bills through my bank.
I know you don’t want to pay fees on the card, but carrying a negative balance and paying you bill early are both interest free loans to the bank. You can manage your money in whatever way makes sense to you, and interest held by keeping that money in a high yield savings account probably wouldn’t be much, but you can also reduce your level of effort quite a bit.
Technically, their “worst” customer would be one who pays in full on the last day their bill is due, in full, with no mistakes.
I would like say I am their worst customer:
Credit card are great for the extended insurance, travel insurance, rewards, cashback, etc… but only if one never pays interest and keep a positive balance.
Otherwise, I pay my regular bills through my bank.
I know you don’t want to pay fees on the card, but carrying a negative balance and paying you bill early are both interest free loans to the bank. You can manage your money in whatever way makes sense to you, and interest held by keeping that money in a high yield savings account probably wouldn’t be much, but you can also reduce your level of effort quite a bit.
Technically, their “worst” customer would be one who pays in full on the last day their bill is due, in full, with no mistakes.