Let’s be honest, many people avoid having credit cards for fearing losing track of their expenses what usually end up in struggling when paying back debts. In pandemic times, it is quite easy to struggle with credit card expenses and debits.
The reasons for this indebtedness can vary from purchases made in the heat of the moment to payment of the minimum value of the card. Plus, many people had to deal with the income reduction and of course, and even unemployment during the last year.
The buy now and pay later game is intimidating sometimes, and it’s the reality for many of us. But we can teach you the path to achieve financial peace of mind.
Here are the best ways to live in balance with credit card payments and learn how to control your expenses by taking some simple steps.
Financial Plan
When we talk about money, the best advice is always to plan. You need to organise your expenses to avoid extensive expenses. Knowing your credit card limit is essential to avoid ending up paying more than necessary.
The temptation is always there. We know it. But it is better to control the limit and always remember that credit card money is not yours. It does not belong to you in real terms.
Reduce Your Credit Card limit
Here is the most practical way of avoiding excessive debts. I have lost count on how many emails and text messages I do receive from my credit card company to remind me that my “new limit has been approved”.
I am a quite controlled person when it comes to excessive expenses, and I try to keep on track of what I should be using monthly. But reducing a credit card limit can be the best way to control and avoid credit card debit for those who never stop using them
Pay Off Your Credit Card Balance
That is the best tip I can give to you. We all know that paying the minimum balance monthly can lead you to financial troubles quite easily. What seems to be a lifesaver can become your worst nightmare overnight.
Have only two Credit Cards
I know some people that have more than four credit cards from different companies. That is a trap! You should have only two in maximum. One that will be using monthly and the second just to be used in extreme cases. Both credit cards should have a limit bigger than your monthly income.
This way, it is always easier to manage and centralise accounts as well.
Choosing the Due Date
It seems a bit strange but the best due date is next to your payday. This way you can avoid extra fees and delays in payments. Then, you can also prioritise the credit card payment without forgetting it.
No Annual Fee
Credit cards without annual fees are a good match when we try to control your expenses. Several institutions already offer this kind of service.
Avoid Impulsive Purchases
I do confess it is a big problem. How to control our impulsive buying when having a credit card in our hands. It is natural to feel tempted to make unlimited purchases. Especially when we have a bigger credit card limit. It is essential to have control over purchases and never spend what you cannot.
