Credit cards have proven to be the best way to shop nowadays. No need to move around with cash from one place to another. All you need is a card with an electronic chip and all your purchases can be made without any hustles. However, you are bound to plunge yourself into debt if you abuse your card. Credit card abuse is using a card when your bank account has little or no money in it. Such a habit can cause huge debts to pile up. If you are scared of getting into debt with your credit card, consider the following tips for people who use their credit cards to make purchases of most of their goods.
What is the point of buying an item whose cost is not consistent with that of your account balance? This is the question that most people forget to ask themselves. Granted, you may have more money coming into your account at the end of the month. But, that is not enough to warrant such a spending habit. You can free yourself from unnecessary worries by simply buying items whose cost tallies your current bank account balance. After all, the debt that you will incur will be paid back with interest. This is something you can avoid if you only buy what you can afford.
If you cannot easily ward off the idea of using your credit card for making purchases that your current account balance can meet, then pay with cash as often as possible. In cases where it is possible, you can make a complete list of your projected expenditure for a particular day. You can easily manage to deal with hard cash if you take such a step. This can help you to avoid making unnecessary purchases.
Most people find themselves buying certain commodities on impulse. This is dangerous and often accounts for most of the debts that are incurred by people. The worst impulse purchases are those which involve huge sums of money. On the other hand, impulse purchases that involve small amounts of money lead to debt if they are made repeatedly. A sum of ten or so purchases of small items can lead to credit card debt.
Tammy Richards is a seasoned finance writer with over 15 years of experience in the industry. With a keen eye for detail and a passion for helping people make smart money decisions, Tammy has become a trusted voice in the world of personal finance. Holding an MBA and drawing from her extensive entrepreneurial background, she offers valuable insights and practical advice to her readers.
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