3. TAKE ADVANTAGE OF INTEREST-FREE CREDIT CARD DAYS

Credit cards usually allow up to 55 interest-free days, which can be hugely beneficial when you’re in a pinch. The interest-free period starts on the first day of your account’s monthly statement cycle and ends on the payment date.

In other words, payment is due within your account statement’s 30-day cycle plus 25 days. So if you make a purchase on day 1 of your account statement cycle, you’ll have 55 days to pay it off before interest will be charged. A purchase made on day 2 of your account statement cycle will give you 54 interest-free days.

Settling credit card debt timeously is good for your credit record as it shows you’re a responsible, low-risk credit consumer.

If you don’t pay the instalment in time you’ll immediately be charged interest. NOTE Interest-free days are usually applicable only to over-thecounter purchases. Using your card to pay for petrol or for transactions such as withdrawing or transferring cash incurs instant interest. Credit cards usually come with monthly administration fees as well as penalties for late payment and cash withdrawals.

Because using a credit card is so convenient, it’s easy to get into debt. Use yours only when you absolutely have to and always try to pay off the debt within the interest-free period.