I am sure one way or another, you have overspent on some less important things that you bought through your credit card.
Yes, that stylish bag that you don’t really need because you have not even used the last one you bought. That high-heels shoes that you won’t really wear, because its too high for you, that discounted but branded blouse that would just add up to your already big collection in your closet, or that piece of gadget that you don’t even know how to ticker with.
You know you are on a tight budget but still you charged a pair of that running shoes – actually # 25th on your shoe rack, or you may have enrolled in an exclusive men’s club just to boast to your friends, or bought that new tablet to show off to your colleagues.
All excited, you also booked a flight – your nth vacation to Boracay this year – because of the “cheap” fares that a local airline has been advertising. You can’t just resist it even if you have no vacation leaves left for the rest of the year. Never mind, you’ll just lie to your boss just get to the beach with your girlfriends.
Again, you charged the hotel accommodation to your other credit card. I will be getting my mid-year bonus soon anyway, you quip.
Then before that beach party you booked for, you enjoyed almost every weekend night partying with your office mates, charging more of the expenses to your Visa or Mastercard.
After all the good time, your credit card billings arrive your office or home address a week apart from each other.
Whoa!@! You are stunned… the shock sets it… you overspent on your credit cards again. The realization is much dizzying than the hangover you had for mixing up tequila, rum and beer during your last night out.
It’s a cycle, a vicious one that most of us get into with the use of our credit cards.
Here are some tips to get the most of your credit card, not the other way around.
1) Spend within your limits.
2) Buy only the things you need. Yes, you can plunge into shopping sprees sometimes but not spend every single cent of your salary just to pay your credit cards.
3) Always pay the entire credit card due for the billing period, not the “minimum amount due”.
4) Pay on time. You should not allow finance charges and late charges to add up to your ballooning credit card debts.
5) Keep in mind that all those “zero interest” installment promos are applicable only of you have no balance left on your card every month. Otherwise, finance charges apply.
6) Try to ask you card company to waive your annual fee/s because most credit cards companies really allow this for those with good credit card standing. They would waive annual fees if you ask them.
Threaten them that you’d simply not renew your card, and most probably they’ll waive the fees. Some card companies will require a minimum purchase in a month’s time (after your anniversary month) to get a “reversal” on the annual fees.
7) If you have cash on hand, why use your card?
8) Just don’t swipe.