Credit Cards
There is a splendid array of plastic credit cards available. Some charge you an annual fee, some don't. Some credit cards offer you rewards or travel points (these ones usually charge an annual fee). Everybody I know uses plastic.
The trick is to avoid paying interest, and make no mistake, all credit cards charge very high interest rates. If you can, pay them off in full by the due date and avoid any interest charges. If you can't pay them off every month, you need to sit down and do some hard thinking about your financial situation. Perhaps you can spend less, increase your income, or find a way to finance your expenditures at a much cheaper interest rate.
By way of example, if a credit card carries a princely 19.99% interest rate, and requires a minimum payment of 2.5%, it would take over 17 years to pay the full balance if you pay the minimum required each month. Ouch. And you thought that sale price was too good to pass up. The 19.99% rate is used by many credit cards in Canada.
Remember if you pay by mail they will record the date of payment as when they receive it, not when you mail it. Online banking is faster however there may be a time lag depending on the time of day and where you live. Most Canadian banks operate their online banking according to the time in eastern Canada.
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The trick is to avoid paying interest, and make no mistake, all credit cards charge very high interest rates. If you can, pay them off in full by the due date and avoid any interest charges. If you can't pay them off every month, you need to sit down and do some hard thinking about your financial situation. Perhaps you can spend less, increase your income, or find a way to finance your expenditures at a much cheaper interest rate.
By way of example, if a credit card carries a princely 19.99% interest rate, and requires a minimum payment of 2.5%, it would take over 17 years to pay the full balance if you pay the minimum required each month. Ouch. And you thought that sale price was too good to pass up. The 19.99% rate is used by many credit cards in Canada.
Remember if you pay by mail they will record the date of payment as when they receive it, not when you mail it. Online banking is faster however there may be a time lag depending on the time of day and where you live. Most Canadian banks operate their online banking according to the time in eastern Canada.
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