Regardless of your employment status, a credit card may make you feel like you are always broke. Well, I can confirm that’s really true if your credit card rate keeps on increasing like it is an epidemic that is not easily stopped or maintained. To solve or avoid this from happening, there are several ways to apply. Here are tips and suggestions that you must pay attention to. Otherwise, you’d keep piling up your debt until you eventually become moneyless.
Use One or Two Cards
Having different credit card accounts seem a good idea, but think again. The more cards you have the more opportunity for you to spend more, and that is dangerous. Even if you justify that you are using different cards so you won’t pile up the debt, still the total sum of all can give you so much stress. If you have more than 3 cards, better stop borrowing money from some of those financial institutions. Just limit your use of 2 cards maximum as much as possible.
Stay Away from Malls
One way to lessen your spending is to not spend at all. It takes discipline and responsibility to lower your debt on your credit cards. Just because you are fascinated of the color of the dress you immediately have your card swiped. If it is not necessary, do not buy anything and stick to this rule.
Prefer a Debit Card
There is a much better to use than a credit card, and yes you are right, the debit card. If you go out to shop, it is much better that you bring your debit card with you. You can spend as many as you want, but not to add interest charges. But still, limit your spending to your needs only. Most of the time, the account with your debit card is your savings, which means must be consistently used for emergency purposes.
Have a Monthly Budget
To easily help you spend less, create a budget plan for your personal and family costs. This means that you need to a have range of amount that must not exceed within 30 days. You can list down all the regular things you usually buy or spend money for in order to have an idea of how much you shell out money in a month. The number one rule should be never spent beyond the budget.
Avoid Online Transactions
Sometimes, the piling up of debt on your credit card is due to online shopping and purchases. If you have the habit of doing that, you must be extra careful. If you directly use the credit card number of your card, there is a tendency that it can be used, without you knowing, because it has been in the system of a particular website. You better use something that does not let you give direct credit card information, such as PayPal and Payza. This can assure you that you won’t be charged extra.
Check Score Regularly
Be sure to check your rate or score on a regular basis. You also need to have an idea whether the amount of your credit card is according to your spending or not. This helps you identify if you are being robbed, which may add to your debt, and that is more frustrating.
Pay on Time
Once you have the bill, mark your calendar as to when you need to pay it. Do not add more amount to your debt or else it will just make you broke. You must remember that there is interest on every late payment. Sometimes, the charge is based on a day, and to delay that for a week is already a big amount of cash added.
The best thing you can do to avoid forgetting the due date is to create a task or memo on your personal phone with alarm. This should be able to remind you that you have to pay within a particular day of the week.
Opt for a Low Interest Rate Card
Not most people know the low interest card but this is something you should start learning. Well, it is the same application of a credit card but with much lower and probably affordable interest rate. Providers of credit cards usually do not offer this at the time that you are applying or registering for an account. You can still transfer your credit card balance to a lower interest rate card while you are still an existing customer.
When you do, try something strategic like you inform the company that you are thinking about closing your account, unless there is a way to have lower rate option. That’s when they can start offering the low rate credit, which is already available or existing, than letting you go. Trust me, they don’t want to lose a single customer so they have to make some negotiation.
There are many things that can surely make you grab your wallet and have your card swiped, and apparently lose money from your savings. But it is not too late to have a solution on how to spend less and lower debt on credit card. If this is your ordeal, better follow the tips suggested on this page as they will help you cut your costs and have a less stressful life. Whether you are an individual or with a family, lowering a credit card is an investment for the future.
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