 When looking at all financial tools at your disposal one of them stands out the most among all others: your credit card. It is the most useful and also probably the most used tool you have. Unfortunately, it might not be the one that people know the most about, and that can lead to some confusion, if not some problems. But credit cards and the banks that control them are becoming more user friendly and nowadays people who use credit cards have a lot of advantages. In terms of the basics of its use, it’s still very much the same: you have a card that you can get credit with, and you have to repay said credit advances over time, with interest. But when it comes to savings and some financial creativity when the time comes to paying for the debt, there’s a lot more that you can do now. We know that different car activity is repaid with different interest. For example, getting cash out of an ATM machine generates debt that is paid at a higher interest than if you make a payment directly with your card. It used to be that the payment method used to repay this debt made you pay for the least expensive debt first, which meant that the debt with the highest interest was paid last and it would generate more expense for you to pay. Nowadays, a system called positive payment hierarchy states that the highest interest debt will be paid first, which will potentially save you a lot of money in interest. I’m sure you have heard of cards that offer an interest free period when you first get the credit card. Interest free credit cards can be coupled with the positive payment hierarchy system and use it as a way to repay debt quickly. If you transfer your balance from your current credit card to a new credit card that offers an interest free period you can immediately start repaying your more expensive debt without accumulating more debt from interest. Of course this interest free period won’t last forever, but it may be enough to get you to a much more comfortable position in regards to your debt. Even the most careful people can get caught up with shopping or even caught unaware in an emergency situation, so it’s no shame to do something like this to get rid of your debt. In fact, getting rid of your debt as quickly and cheaply as you can is a very good
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