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Shopping or
buying things is one of the guilty pleasures in life
and with the presence of credit cards, spending
seems to be more like a habit and way of life.
Credit cards make one's life easier but it could
also make one's life a living hell once you find
yourself drowning with credit card debt.
For people that are not yet in this situation, good
for you (and read on anyway to make sure you
recognize the danger signals) but for those who are
just inches away from that situation (or worse), pay
attention because this might actually save your life
from overspending your credit cards.
1. Know your credit limit
The first thing that you should know is your credit
card limit so that you know if you are going
overboard. Always keep in mind that once you cross
that limit, there is no turning back.
2. Set your own credit limit
Aside from the credit limit set by the credit card
company, it is advisable that you set your own
credit limit that you can follow. It would be good
if it is significantly lower than your standard
credit limit so that you could actually be in
control.
3. List down all your expenses
Having a list is really helpful in determining the
things that you are buying and purchasing. Listing
it will help you track down the things that you put
your money into and trust me, half of it is really
not that important to your life.
4. Don't succumb to the following sales pressures
Advertising on TV, radio, or elsewhere is meant to
not only inform but to tempt you into making
purchases you would otherwise do without. Some
common techniques are associating the product with
heroes, as a status symbol, as a way to be more
attractive, sexy, or smart. Avoid purchase decisions
based on advertising techniques because they are
cleverly done solely as a way to get you to transfer
your money to the company that's doing the
advertising.
5. Avoid shopping unless it is really needed
It is not easy to resist temptation especially if
the name of that temptation is the word, "sale".
Avoiding stores would help you overcome the instinct
of buying and using your credit card unnecessarily.
It would be better if you did not see the things
that would tempt you. Just use your imagination!
Also avoid buying just because there is a coupon,
free gift, or other incentive attached, unless you
really need the item.
6. Keep your credit cards at home
If you are the type of person that carries at least
5 types of credit cards in their wallet, I suggest
that it would be better if you just carry one or two
so that you will not be tempted to use all of them.
If you cannot avoid the shops, then just leave your
non-emergency credit cards at home.
7. Keep your receipts
If you are still not aware that you are on the verge
of overspending, keep your receipts for a week and
then total all the expenses that you did for that
week. This would really be an effective wake-up
call, more so even than coffee for your body!
8. Carry cash
Instead of making the habit of paying through credit
cards, develop a habit to depend on paying
transactions by cash so that you could really be
able to keep track of your expenses. Cash is easier
to count rather than card transactions. It will also
make you more resistant to impulsive purchases.
Do this exercise: Sit down and try to remember the
major purchases you've made in the last year or more
(or go through your old receipts to jog your
memory). How many of those purchases would you
consider to be a "bad" purchase? In other words, was
it something that you haven't really used, worn, or
wasn't as important as you thought at the time?
Of those major purchases (items that cost maybe $100
or more that weren't necessities), how many of those
purchases would you repeat if you knew then what you
know now?
You'll probably find that at least half of your
purchases were "bad". So use that as a guideline to
help you avoid making similar bad purchases in the
future, perhaps by postponing instant gratification
by "sleeping on the decision". More often than not,
you'll wake up in less of a buying mood than you
were the day before, and you won't miss the item you
would have purchased in the slightest.
9. Recognize the signs that you are overspending
Once you realize that you are having a hard time
paying your monthly credit card statement, that is
already a sign that you are losing your control over
the matter. Be aware of these things because it is a
warning to be heeded.
10. Know your limitations
Being aware of yourself could actually save you a
lot of money because you already know the things
that you need and the things that you don't. Knowing
your limitations could help you stop the unnecessary
spending through the use of credit cards.
Credit cards are convenient to use, and absolutely
necessary sometimes, but if one abuses the usage of
their convenience, overspending results and it can
really be a big burden for a person.
Find out why "credit is a four letter word" and pick
up a free report that will help you reduce or even
eliminate your debt, by visiting
Credit-is-a-Four-Letter-Word.com |
