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Many people regret opting for credit cards because of the debts they incur over a period of time. They end up losing money hand over fist because of the various charges levied on their accounts. Finally, unable to bear the brunt, a vast majority end up closing their credit cards. However, closing cards is not the right answer. The right answer lies in choosing the right credit card and using it wisely so you can remain in the good books of the lender for long. If you are wondering if this is going to be really difficult, then, you are in for a surprise. Saving money on your credit cards is not rocket science. There are a few simple tips that you need to keep in mind so you can save a lot more than expected.

First of all, if you hold credit cards whose interest rate is over 12%, then, you are surely paying more than most of the others around you. There are innumerable banks that offer credit cards at rates lesser than 10%; it is these types of cards that you should opt for. Do you groundwork well before you decide on the bank and the type of card from the bank you intend to apply for. This will help you save up to $1000 a year.

When you incur debts that are way above what you can currently repay, consider taking out a part of the money in your savings account to clear off the debts on the credit cards. Remember, the credit card lenders will charge you between 9% and 15% on the debts on your credit cards; however, the bank will pay you only 1% interest on the amount that you have saved up. Hence, take a part of the money and clear off your debts. It is important to remember not to empty your savings account since you never know when you might need it again. This will enable you to save up to $500 a year.

Finally, when you apply for cards, go in for the ones that have great promotional offers. You will be able to save a lot of money during that introductory period. Also, find out details of the duration of the promotional offers and the rate of interest after that. This will help you save at least $50 in the first year.