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4 Tips To Avoid Credit Card Overspending

These tips can keep you out of debtEven though I’m a big advocate of credit cards, I understand that, by owning them, there are some negatives involved.

Sometimes you can’t pay off your credit card each month, and you have to pay interest charges. Sometimes you have to pay those pesky annual fees.

But the largest drawback every credit card presents is the potential for overspending.

We sometimes gain a false sense of security with credit cards, and unfortunately, some of us spend money we don’t have, simply because we can.

In order to avoid buying items you don’t need — or really even want in some cases — follow these steps to maintain responsible credit use:

Create a budget. By creating a budget, you know exactly how much money you have available for frivolous credit card purchases (which should always be zero).

A budget will reduce the urge to spend money by laying out exactly where your income goes each month. Our budget calculator can help.

Never impulse buy. You might come to regret an impulse buy. Rather than make a purchase right away, sleep on it for a few days and weigh the pros and cons.

If after a while you still think the purchase is a good one, go ahead and make it.

Open a savings account. Even though saving money can be boring, watching as your savings account grows is actually very rewarding.

If you have any discretionary money left over each month, plug it into an online savings account with a fair interest rate.

Pack your day. Rather than spending multiple days running your errands, see if you can condense all of your tasks into one day.

This will prevent you from window shopping at select stores and force you to be quick and precise when out and about.

Credit cards can save you a lot of money when used properly. But while the above steps will help you limit the amount you spend on frivolous things, ultimately it comes down to willpower and smarts.

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