Five Ways to Control Excessive Use of Credit Card

Credit card is a good financial source for a customer, who knows how to control it .It has become a necessary evil for all who owns it .now credit card has created its prominent role in all walks of life .A person who loves shopping and extravaganzas will surely become a prey to it. They pay absurd interest rates with service charges through out their lifetime. At the end they worked for profit of big credit card companies ,not for themselves.

Here are 10 ways to control excessive use of credit cards so that a person has control his personal finance.

Know Your Card Well

Many look for the beauty of the card , exotic options available and brad name .Before going for any card, study thoroughly ,whether it suits you in the following aspects.

• Last date of payment of dues
• Rate of Interest,
• Service charges.
•  Payment mode

At last, all these affect your money purse rather than a exotic options and festival offers.

Spend According to Earning 

Your girlfriend or your dearest one may be forcing you to buy gifts for them with your credit card. Think for a moment. If you cannot afford to close the amount spend within 2-3 months, then don’t go for it. When you are a debitor, then nobody will help you to come out of it.

Control Purchase

Before going for a shopping or a travel trip, plan for an hour about the total expenditure  .Add 20% to it as contingency expenses.See whether you can pay your credit card bill within 2-4 months .If not ,reduce the expenditure.

Don’t go By Ads

Youngsters tend to purchase based on the illusion created by Ads. These are pitfalls for the youngsters. They purchase items, which quench instant gratification but are not useful for them, then pay credit card bills. Before shopping spend time preparing for a fruitful shopping. Make a checklist if you forget easily.

Be Careful About Loyalty Points

Many credit card companies give you lot of loyalty points. When you are free at home, just spend a few minutes to calculate the price of gift that the credit company promised to the amount you spend to earn the loyalty point for the gift .It will be miniscule ,limited to less than 4%.So don’t use your card excessively for getting loyalty points.

Just follow the above 5 steps before you make a purchase and see the results.It will be astounding .So practice from today itself and if the results are positive ,then comment.