How can I avoid incurring any interest charges on my credit card?

Contrary to popular belief credit cards are not the evil debt traps that they are often made out to be.  There is a simple way to ensure that using a credit card not only prevents you from taking on any debt but indeed helps you save more money by just using it.  And that is by making sure you pay the statement balance in full on or before the payment due date stipulated by the bank.

This is of course “simple” only if you have used the card wisely and keeping in mind your ability to repay the entire outstanding when the payment is due!  In doing so, you will not only ensure that you do not pay any interest charges but will also earn any reward points or cash back credits if these are features offered by your credit card.  

There is an exception to this however, and that is if you had used the credit card to withdraw cash as you would do with your regular bank ATM card.  In such cases, most banks will charge you a cash advance fee and a cash advance interest rate. This is why we do not recommend withdrawing cash on your credit card unless in an emergency.  In case you do use your credit card to withdraw cash, your best option to reduce the amount of interest you repay to the bank is to make the payment as soon as you can, and, if and when possible without waiting until the statement is created.