Keep an eye on your credit card bill
Does it really matter if you leave your unopened credit card bills in a pile on the bedroom floor?
Plenty of us have been there. Your credit card statement arrives in the post and you just can’t bring yourself to open it. Even if you get your statements online, the process of avoidance is the same.
If this sounds familiar, there are plenty of reasons to open that credit card statement.
Reason one: keep an eye on the 0% period
Credit cards with 0% interest periods can be fantastic products. With a balance transfer card, you can slash the interest you pay on existing debts. Likewise, you can avoid paying interest on an expensive item you would not otherwise have been able to afford if your card has 0% purchasing power.
Of course, there is a downside. If you refuse to open your bills, it could be easy to forget about that ticking clock, leaving you stuck with expensive interest when the offer expires.
Reason two: keep an eye open for rate-jacking
This is a practice in which companies hike the APRs of existing credit card customers.
If the rate goes up, it will almost certainly take you longer to pay off your card and you’ll be subject to more interest over the lifetime of your debt.
There is good news, however. From next January, new rules should lead to a tightening up of this process. Although rate-jacking will still be legal, credit card users will have 60 days to reject increases to their interest rate instead of the current 30 days.
However, you may never know you’ve been rate-jacked unless you open letters from the credit card company.
Reason three: keep an eye out for fraud
According to credit referencing agency CreditExpert, it takes the average victim of identity fraud more than 500 days to become aware of the crime.
Although checking your statement as soon as it arrives will by no means offer total protection against fraud, it will alert you to suspicious transactions.
Reason four: keep an eye on your direct debits
Setting up a direct debit to pay your credit card theoretically ensures you never miss a payment and avoid penalty fees.
However, this will only work if you have enough money in your current account to cover the payment. If you don’t know how much is coming out, you could end up going over the limit on your bank account.
Already aced our first credit card quiz? If you enjoyed that, it’s time to pit your wits against our latest set of mind-bending questions.
Reason five: keep an eye on your spending
If you’re one of those who can’t figure out why they’re always broke, your credit card statement could hold valuable clues. Going through your bill may be a sobering wake up call about your spending habits.
Reason six: keep an eye on your partner
While most of us wouldn’t begrudge our other half an occasional treat and indulgence on the joint credit card, you should watch out for seriously reckless spending.
Remember, you will be equally liable for any debts in both your names.
**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**
Mortgages - YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE. FAILING TO ADHERE TO REPAYMENT TERMS MAY RESULT IN PENALTY CHARGES AND AFFECT YOUR CREDIT HISTORY. Rates may depend on your individual circumstances
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