Here’s how you can make sure that you are not overspending on your credit card

credit card


Credit cards are one of the most popular choices these days when it comes to making purchases. The best part of using credit cards is that you do not have to carry the hard cash in your pocket every time and even if you come across a product of your choice by accident, you do not have to arrange for cash to purchase the same. The credit cards give you the flexibility to just use it for the time being and pay later with your convenience. Hence, a planned purchase isn’t necessary when you have your credit card along with you. Though it entitles the individual with the freedom to make a purchase anytime anywhere, it also comes with a potential threat of overspending. Like every other freedom, if credit cards are not used with responsibility, they might become a source of liabilities for you weakening your financial health. Hence, make sure that you are not overspending with your credit card and making necessary purchases. Let us now have a brief look at the aspects that can render you a clear vision of the fact whether you are spending more than what is required with your credit cards or not.

Check your savings goals

When you allocate your money amongst a few channels, savings must be one of the most critical elements of them. You must also be having a specific target set for savings and meeting the same is a prerequisite for making emergency funds. If at any point in time, you see that you are failing to meet the committed amount of saving, check your expenditures accrued on credit card accounts. It could be that you have spent more than usual to justify your shopping spree compromising margins from your savings, sometimes unknowingly. Hence, make sure that you are not getting taxed with overspending that will further burden your future goals.

Say NO to a forced purchase

With a credit card in hand, you hardly have to think of the liquid cash for making a purchase. When you are just taking a stroll around the malls and shopping centres, you might indulge you in some shopping that could have been well avoided and was not at all necessary. Sometimes, people also shop to go away with their boredom. Do not use a credit card when the purchase is not a mandate. Always keep in mind that every time you punch your card, you generate a liability on your head. Though with a credit card you do not have to make an immediate payment, sooner or later, the payment is obvious, and that’s too with interest.

Check your balance

Balance refers to the amount payable to the issuer and once you see a steady rise in the same over months, make sure that you do a personal study of the expenditures done over the months. It is evident that you have increased the amount of spending, but you need to check if the increment has been on valid grounds or not. If you find that it was only your shopping spree that has added the extra amounts to your credit card bills, it is time to check the same. Overspending can put you into the vicious circle of debt at any time. It is always advised that 30% of your credit limit be your balance and never exceed the same unless an emergency occurs.

Do sharp scrutiny of your credit card statement

When you get your monthly bill for a credit card, make sure that you go through every element of it. If you find any purchase to be unnecessary, mark it and ensure that you remain aware of not making any further unnecessary purchases from the next time.

Credit cards are of great utility when used with wisdom and rationality. Do not think of them as a gateway to shopping. Treat them as essentials for skipping hard cash and set yourself a limit beyond which you would not step even if the credit limit allows you. To know more about credit cards you can follow the below link:

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