Credit card billing cycle: Adjusting your credit card billing cycle according to the time of your salary, can be very helpful in managing your money transactions better. This is an easy way that you can make sure that when your credit card bill comes to pay, then you have enough money. Let us tell you how it works and how you can manage it.
Why is cash flow necessary and what is the relationship with credit card?
Cash flow management is very much needed to stay financially strong. Especially when you use credit cards for every month’s expenses. Setting your credit card billing cycle according to the time and expenses at your salary and expenses, is a very effective way to get better control over your finance.
1. Understand your existing billing cycle
Before making any changes, you have to understand how your credit card billing cycle works. Usually, the billing cycle is about 30 days. This starts from the date when your previous statement was released, and ends just before the next statement is released. For example, if your billing starts from the 5th of the cycle month to the 5th of the next month, your bill payment will usually be about 20 days after the cycle is over.
Tip: Watch your credit card statement carefully so that you can know your existing billing bicycle dates and the last date for filing the bill. This will help you understand how your bill matches your income time and other expenses.
2. When you get money, confirm it?
Whether you do a job or to plan your business, money, it is very important to know when you get money. Employed people often get salary in the beginning or middle, while the income dates of freelancers or business owners may vary.
Tip: Identify when you receive constant money, whether it is a salary, payment of bill, or any other source of income. This will help you change the billing cycle in such a way that there is no lack of money before income.
3. Request the bank to change the billing cycle
Most banks allow you to change your credit card billing cycle. You can easily do this work by talking to customer care or through your online banking platform.
This is how can request for date change:
Contact Customer Care: Call the bank giving your credit card and request to change the billing cycle. Explain to them that you want to set your billing cycle according to your income time for better cash flow management.
Online option: Some banks also offer the option to change the billing cycle through their mobile app or website. For this, see in sections like “Manage Cards” or “Billing Options”.
Go to the bank branch: For some banks, one may have to go to the bank branch personally and request.
Important thing: Confirm the new cycle date from the bank and also know what will affect the last date of filling your bill. Also ensure that there is no overlap in new and old cycles, which may incarnate extra charges.
4. Select the billing bicycle date matching your income
Choosing a billing cycle date that you get right after the income is ensured that you have enough money to pay the credit card bill. This can prevent delay or unnecessary interest fee.
Example: If you get salary on the 1st of every month, you can ask your billing cycle to finish around the 5 or 6th of the month. This will give you 20-25 days to pay the bill, and you will know that you have just received money.
Benefits: By fixing the billing date just after the income, you will avoid using credit to meet the lack of money, reduce the risk of late payment and eventually reduce interest costs.
5. Use new cycle to make budget effectively
Once your billing cycling coincides with the flow of your income, use this new system to plan expenses and control the expenses effectively.
Create a monthly budget: Divide your expenses according to your new billing cycle. Consider allocating funds for essential commodities, savings and other expenses within this cycle.
Avoid more expenses: Keep an eye on your expenses and avoid using your credit limit completely. The goal is to create a expense pattern that coincides with your available cash flow.
Make plans for future expenses: With an estimated billing date, you can already plan for large expenses (eg travel, festival and birthday), which will not make any disturbances in your budget.
6. Adjust according to the requirement
Adjusting the billing cycle is a flexible method that can be changed. Changes in life, such as changing jobs or fluctuations in income, may motivate you to re-evaluate your billing cycle.
Keep an eye on your expenses: Keep an eye on the pattern of your expenses and see if your billing cycle is still matching well.
Regular if necessary: If your income time changes, do not hesitate to re -contact your bank to re -adjust your billing cycle.
Changing your credit card billing cycle is a very effective strategy to manage cash flow and reduce financial stress. By spending a little plan and thoughtfully, this simple change can make a significant difference in the way you manage your finance every month.