If you have credit card debt, we imagine you’d love to get that paid off and live a debt-free lifestyle. However, you might not know how to do that quickly, efficiently and in the least expensive possible manner. You definitely know, however, that applying for a new credit card is the wrong solution to this problem. That will only put you further into debt, correct? Maybe not. Maybe a new credit card is actually the best possible way for you to ensure you are able to stay out of debt as quickly as possible and for as little as possible. Just hear us out.
It’s called a PIF card, which stands for pay in full. The premise of this card is to keep you from going into debt by requiring that you pay the balance in full each month. Except, you don’t have to pay the balance in full each month. It’s up to you. However, the way this card works is pretty interesting in a way that will take a moment to explain.
Let’s say you charge $1,000 on your card in a month, pay it off in full and avoid any interest charges at all. That’s good; that’s how you responsibly use your credit card and reap the benefits of credit without the downfall of debt. However, if you decide you cannot make the full payment, you will pay interest on every single purchase you made for the entire month starting the day you made the purchase. Even if you leave a $5 balance on your card, you will pay interest on everything that you purchased throughout the month, from day one.
It’s expensive, and it’s how these cards are keeping people out of debt and providing them with good credit card usage habits. It might not help you pay off the debt you have now any faster, but a card like this will keep you out of debt in the future thanks to its expensive revolving balance penalties.
Photo Credit – Getty Images