Paying the Full Credit Card Balance Can Mean Paying No Interest
Did you know that by paying the full credit card balance each month, you could end up paying no interest on your credit card spending at all?
There are plenty of credit cards offering interest free days. As long as you’re diligent about repaying your entire outstanding balance before the statement due date each month, you won’t incur any interest charges on the amount you spend.
By paying for your bills and expenses at the beginning of the month and then working on paying the full credit card balance throughout the rest of the month, your account won’t incur any interest charges at all.
However, it’s important to check that you repay the entire balance before the statement due date, so be sure you have your dates correct.
If you’re careful about shopping around for a credit card with a low annual fee, you could find that paying for the things you want on your card isn’t nearly as expensive as you might think.
The key to making sure you’re paying the full credit card balance each month is making sure you’re not spending more than you can realistically afford to repay. Always monitor your credit card spending carefully to be sure you’re not spending more than you can repay.
A smart customer could benefit from budgeting wisely to make sure all bills and expenses are covered at the beginning of the statement cycle by paying for them with a credit card with interest free days. At the same time, leave as much of your income as possible in either a savings account or an offset account to reduce the amount of interest you pay on your mortgage for those 30 days.
Then, at the end of the month, withdraw your money and put it towards paying the full credit card balance off completely. This way, you won’t pay any interest on your credit card and you could be benefiting from reducing your interest costs on other loans as well.
