Spending on a credit card almost feels like you’re not spending at all. Credit cards provide ease, rewards, and security. That’s why it’s that easy to overspend with your credit card. Whenever you get an urge to buy something, it’s easy to slip into the trap of reaching for your credit card.
You’re walking into the store, intending to get just one thing, and you’ve spent 10 times what you’ve planned before you know it. However, overspending with a credit card and the fees and interest can accumulate.
Don’t be too hard on yourself; it happens to all of us, so read on for some of the best tips around before you get your next credit card bill and ask how to stop spending money.
Consider Your Current Balance Not Your Credit Limit
When you have managed your credit well and have a decent salary, you will be rewarded by your credit card issuer with a high credit limit. You don’t have to use all the credit that is available just because it’s there, but many people follow into that trap.
Although more available credit increases your buying power, having a big credit limit is not the same as getting a lot of money in the bank.
Since the only way to avoid going into much debt is to pay off your balance in full, let your current balance affect how much you spend.
Set your own limited spending on your credit card based on your income and other expenses, not your credit limit. Track the balance on your credit card and not just your available credit.
Leave Your Cards at Home
Your resolve may not be solid enough to surmount the million-dollar marketing strategies of retailers. No credit card, no expense!
Just bring your credit card when you are shopping for a particular reason – purchasing food (with a list) or buying a new appliance. If not, you may risk using your credit card to fund impulsive buying.
When you are prone to overspending on credit cards, you need to deal with the situation. Place your credit cards away so your credit card spending can get more disciplined.
Delete Your Saved Credit Card Information on Shopping Sites
It wasn’t long ago, every time you wanted to buy something, you had to get into your car and go to the store physically. Now, in just a few clicks, you can simply rack up thousands of dollars to spend.
Make it inconvenient for you to use your credit card. Begin by removing your saved card details from all your favorite shopping sites.
Take it off Amazon. Remove it from your login app and password. Delete it from your browser.
Stick to Cash
It’s easier to use a credit card to pay for a transaction than to count out a stack of bills, but that ease is one of the factors that contribute to overspending.
The drawback to credit cards is how conveniently you can overspend; when we lend our card casually to buy a product, we are always unaware of how it will add value at the end of each month.
With cash, you see physically how much you have, and how much of your funds is decreasing for every purchase. You are forcing yourself to spend only what you have by paying only in cash.
Give your credit cards a rest and seek to adhere to a cash-based method and see if your spending habits can be curbed.
Cut Your Credit Cards Up
Another option to helping you cut spending on credit cards is literally cutting up your cards.
Of course, you can quickly get your way with a replacement card, but it certainly does make you think twice before you do so.
However, if you take this approach, be careful that your credit card may be charged an annual fee, so don’t forget that the account is open before you cut your card into pieces.
Ending overspending and changing your spending habits takes time and effort, and every now and then the temptation to swipe your card will always come back. This happens to all of us so don’t be hard on yourself, it’s hard to change bad habits.
Once you know how to budget and set specific goals, you will become a smart buyer who knows how and when to stop spending money and, instead, manages finances wisely.