Spending more than what we can afford is a problem, and addressing it is our responsibility. It is convenient to have a credit card or multiple cards, but at times, too much credit might not be the best thing to have if there is a tendency to overspend. Spending should be proportionate to your cash flow. So, you don’t hit the debt trap and can truly enjoy shopping.
It is good to have a plan or a strategy to deal with excess credit. We will look at some tips that you could implement to check your credit card bills.
How many credit cards do you need?
It is easy to apply and get multiple cards, but the question is how many do you need? Multiple cards will incur multiple bills, and it might get difficult to pay them back. If you can cut down on the number of cards you are handling at a given time, it will help you manage your bills efficiently and ensure timely repayments.
Check your credit card expenses
Avoid using your credit card for unplanned expenses. Use other modes of payment which are linked to your bank account and are not credit-dependent. For example, you can open a zero balance account, save in it while earning interest and use that for emergency expenses.
Every time you use your credit card, keep a note of it. Plan when and where you will use your credit card so that you don’t have to deal with unnecessary credit card bills.
Spreading out your expenses will put less pressure on your credit card and eventually lower the credit card bill amount.
Enable auto pay
It is effective to enable auto pay for your credit cards. Your bills will be paid on autopilot mode every month on a specific date from your account, and you don’t have to worry about bill payment dates.
An advantage of the auto pay process is that you will hardly miss a bill date, which will ensure no additional charges and will help you maintain your credit score.
Minimum or full, which bill amount should you pay?
Every month, when you receive your credit card bill, there is an option to pay the total outstanding amount or the minimum due amount. Never choose to pay the minimum due amount on a regular basis. Once or twice is ok, if you have limited cash, but don’t make it a habit. If you pay the minimum due amount on a monthly basis, soon you will see your credit card bills spiraling.
When you pay the minimum due amount, the remaining amount is carried forward and interest is charged on it. So, avoid paying the minimum due amount.
You can easily save yourself from the unwanted burden of credit card bills. Just maintain some disciplined payment and spending habits. Don’t take credit that is beyond your payback capabilities. And never overuse the power of credit. Learn more about how you can use and manage your credit card better.
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