Save Yourself from Credit Card Debt – Tips to Curb Your Spending
Having a credit card is nice. It is convenient and can even bring you many benefits and perks. However, it is also a tempting little piece of plastic that could have you singing the financial blues if you’re not careful. Before you race of to the store and say “Charge it!” here’s a few things to consider that will help your curb your credit card spending.
Money in the Bank
If you don’t have the money in the bank to write a check or make a cash withdrawal to cover your purchase, can you expect to pay off the balance on your credit card? The answer could be yes or no. It all depends on your particular financial situation. This does not mean you should not make the purchase with your credit card. You simply need to consider if the purchase will be worth the added fess and interest or if it would be better to just pay cash.
Minor Purchases
Try and make the interest rates worth it. Don’t run out and buy something on credit that will only cost you a few dollars. You could wind up paying double. Save your plastic for the bigger purchases and make the interest worth the money you will have to pay.
Can You Afford It?
This is not so much about your bank balance as it is asking yourself if you can really afford to use that plastic. If you’re struggling to pay your basic living expense, you probably need to put the card aside an not use it until things get better for you financially. Sure, you might have a minimal credit card bill to pay every month, however, you won’t be racking up the charges, fees and interest.
When times are tough, that credit card can seem even more enticing than ever; almost like a lifeline. However, credit cards were never intended to pay your living expenses for you. Using them when you do not have the money to pay can only add to your stress and debt. Remember, a credit card does not entitle you to a freebie. You are still responsible for payment. It’s simply a way to get something now and pay later or over time. Finding yourself unable to pay at the end of the month could lead to not having that card, or any credit card at all, in the future, and could seriously damage your credit score.
The Bottom Line
Only use your credit card for bigger purchases and only when you know for sure that you have the finances to back it up. If you’re in a bad boat financially, put it away until things are looking up. For those who really only intended to have a credit card for emergencies, remember to keep it that way. A nice new dress does not qualify as an emergency. Hide the card so you are not apt to use until you need it.
By putting these simple tips into practice, you will find yourself thinking more consciously about your budget and spending habits, curbing your debt and easing your financial burdens.
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