Hidden Charges You Pay Over and Over Again
2. Charges on balance transfer
This is a kind of trap usually people do not understand or they ignore mostly. Usually people keep on transferring their balances from one card to another thinking this will help them to lower their credit card debt. But at times the bill surge up four times the money they actually can use. It is better to maintain only one card and pay off the outstanding amount on time. Also ensure that you don’t exceed your financial limits.
3. Charges on interest or finance costs
Finance cost or interest is one of the well known charges among credit card users. It is mainly the interest rate levied by the credit card company on the outstanding amount if you fail to pay it before the expiry of the due date. This charge can range between 2.5 Percent and 4 Percent per month which when calculated annually will turn out to be as high as 30 Percent to 48 Percent.
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