In this article we continue of giving you the
hands-down approach on planning your savings smartly. This is a blog in a continuation last blog Insurance Profit - Simple Profit
Pay off your debt and credit card bills on time :
A typical
free credit period in India is 45-51 days. If you pay off the dues
within this period, the interest is saved. If you are unable to pay off the
entire amount within the due date, a common practice is rolling over the dues
after paying the minimum amount. This is expensive as you would have to pay an
interest of about 3 % per month (yes, 36% interest p.a.!) on your
dues, and the bad news is that the new purchases made will not get any
interest-free period until the dues are completely settled. Many people are
still not aware of this.
Hence, it is always advisable to pay
your card’s bills well within the prescribed time, thus avoiding
unnecessary charges such as overdraw charges, late payment, interest cost, etc.
All this adds up and you could save Rs.5000 to Rs.50000 every year.
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