Do you feel like your credit card spending is out of control? Follow these six ways to lead you off the path of financial catastrophe.
Credit cards should be a convenient short-term way to pay, not a source of regular spending. Unfortunately, some people have a hard time staying true to this concept. Instead of paying off the entire balance due on the card each month, they let it grow and pay only the minimum amounts.
Take your credit card charges and your canceled checks for the past year and sort each charge and canceled check into two piles. One pile is for the “must” payments such as utilities, taxes, medication, rent or mortgage payments. The other pile is for the optional spending, such as meals at restaurants, gifts for people, recreational events or equipment.
This exercise may give you some guidance on how to spend more wisely. It may even help you create a surplus of cash for a savings and investment.