There are many benefits of carrying a credit card, such as the convenience it affords when making a large purchase.
However, using a credit card in a responsible manner is easier said than done. In other words, it’s not out of the question that your spending could quickly spiral out of control.
Here are three ways to contain your credit card spending, thus giving yourself peace of mind day in and day out:
- Set a spending limit. Your credit card company will set a limit, but you also need to do the same. For example, just because you have a $10,000 credit limit doesn’t mean you can afford to use all of it in one month. You need to set a personal spending limit each month, ensuring that you stay within the lines as to not find yourself in trouble when the billing cycle comes to an end.
- Use online account management to your benefit. With this, you will always have a clear idea of how much you’ve spent, how close you are to your personal spending limit, and the types of purchases you’ve made. This is much easier than tracking receipts and calling your credit card company every time you have a question about your account.
- Don’t make impulse purchases. With cash, you can only spend the amount of money you have. Sure, you can still make impulse purchases, but it’s not quite as simple as when you’re using a credit card. If you’re going to make a purchase, be sure it fits comfortably into your monthly budget.
If you do these three things you’ll find it much easier to contain your credit card spending. There’s no guarantee you’ll never make a mistake, but you’re definitely in better position to keep your spending in check.
Do you have any other tips for containing your credit card spending? Is there something in particular that has worked well for you in the past? Share your strategy in the comment section below.
