“It’s Payday!” Cheered every young lady gracefully while getting notifications text from the bank saying they receive monthly pay from the company. Then everyone, I mean literally everyone will feel like they are the richest person on planet and asking everybody to hang out and have some fun. But this usually doesn’t last very long. Give it one or two days, and then we got some debts to pay. Usually the fun went over when the credit card’s e-billing letter came along, and then we have come again to the reality.
I know how you feel ladies! Credit Card indeed is a very helpful tool for us yet sometimes can be really mean too! But if we can use them wisely, I believe that we won’t be facing any significant financial issue in the future. I myself have 2 credit cards and have been using them for 2 years until now. It’s not too long but I had dark times in the beginning of utilizing them. I used up all the limits in each of them when I was on a holiday abroad. I encountered
such a big lost when paying the bill. Too bad I learned a lesson about this the hard way.
Based on my experience, I started to control my self over my will and my expense. From what I learned having broke back then, allow me now to share my suggestions to set you away from facing problem like I did:
- Set priority on your What to Buy This Month’s list. Surely every month you have something to buy. Usually it’s divided into two; your needs and your pleasure. I won’t say that you cannot having fun with your money by buying unnecessary stuff. Oh no dear. We need to reward ourselves. It’s vital ;). All I’m trying to say is you must set the priority of each things that you would like to purchase. After you fulfill all your needs in that month, then you can consider to buy fun stuff. Say this month you want new Longchamp wallet for pleasure, go for it. But perhaps you should consider to buy that Channel perfume next month. Don’t force yourself to buy it with credit card.
- Avoid using it while looking at those SALE! signage. Unless it really meets your needs, don’t get too high while seeing those sparkling posters. I know there’s a defense mechanisms on it, like : “I don’t need it now, but I definitely will in the future!” No love you don’t need it, it’s your alter ego talking. And besides, Sale will always be there throughout the year. You will always end up use credit card over and over again because you will never had enough of it. Every time you spend money on unnecessary discounted stuff, that is a waste of money.
- Ask yourself: Do I really need this? A very important question to be planted inside your brain. Every single time. Ask yourself before purchasing something with your credit card.
- If you have more than 1 credit cards, spare 1 unused for emergency. If you have 2 credit cards like I do, only use one of it for your routine expense. Keep the other one save from the “evil” side of you. Spare them for the sudden health needs, unexpected business trip abroad, or impulsive escape holiday (this, I will forgive). Make sure you always have one spare for those kind of unplanned scenarios.
- In terms of installment, learn about the interest rate and its due date period. If you need to buy something rather expensive and you want to make the installment out of it, make sure you know about the interest rate and its due date period. If you want to make more than one installment, calculate it thoroughly and be certain that the amount of the installment in each month is still in your grip.
- Pay you your bills on time. This is the most important of all. Pay your bills on time. The longer you pay, the more you stack your debts. The crazier you’ll get. Besides, your payment history will be recorded by the bank and used as your finance history record. I believe you don’t want a bad record on it. 🙂
Note: I am not a wise spender as well, but I am trying to be one. For starter, I tried to control my impulsive consumption habit by not having too much time spending at malls. LOL. How about you? Do you have your own method to avoid abusing your credit card? Please share with us!