Credit sucks. Don’t get me wrong when you have an emergency it can be great. Most of the time credit is just the credit agencies way of handing you the rope. They hand it to you ans hand it to you. Until you hang yourself with it. If you are too lose with credit it is almost assured that credit will get a ahead of you. Here are some ways on how to prevent yourself from overspending on credit cards.
♦ Keep your credit cards on ice. Literally
This is actually one of my favorite methods. It also make a great talking point when you have guests over. Freeze your credit card in the middle of a nice big block of ice. When you “want” to use it you are only going to go through all the efforts of getting it out and then refreezing it when you really need it.
♦ Only have Two cards
This goes with the last hint. Have your iceblock emergency card, but also keep one in your wallet. This one should be prepaid though. No chance of drawing out more than you need then. You have what you need for day to day in your wallet and your backup -too much rope- card in the freezer, chilling til you need it.
♦ Keep your credit limits low
Really I should say keep them comfortable. Or “relatively” low. It depends on how much you make. Do not go over what you could pay out in two months if you scrimped and saved every spare cent to pay it off.
♦ Make a budget
The “B” word. I know, no one likes to budget. Having a credit card with enough on the balance does not mean that you can “afford” that 92 inch HDTV Plasma screen that you want. Budget and save until you can get it.
♦ Pay off the credit cards every month
0 dollars owed on iceblock card and refill the balance on wallet card to what you want it at. Nice and easy. If you do have any balance make sure to knock them to zero. Of course that is in an idyllic world. At a minimum you MUST pay off what is due, get no late or overdraft fees and do what you can to pare the balance of the one with the highest APR down. Keep making your cards more manageable rather than less.
Want to know the VERY BEST to prevent yourself from overspending on credit cards? It is simple: Only use cash except for emergencies.