How to avoid credit card overspending. Overspending with your credit card is quite simple. A lot of people do not even know when they overspend at all. They simply buy a lot of things on impulse only to discover later that they are in debt. Spending the money is not even the problem, the main issue is paying back. Note that overspending can badly hurt your credit score. It helps you run into debt. How can you avoid overspending?
How To Avoid Credit Card Overspending : Avoid Having Many Cards
It is advisable to have less credit cards, too much credit cards make you feel that you have much money at your disposal. As a result, you spend carelessly forgetting that the credit card money is debt you MUST pay back. There is no law stating the number of cards you should have, but a few cards will save you stress. Instead of many cards, just get a few that you are sure to handle. A few credit cards will minimize your expenses and help you pay your balances in full monthly.
How To Avoid Credit Card Overspending :Do Not Let Your Emotions Drive You
This is because anger, boredom, jealousy and sadness can make you to overspend. In they end, they spend more than they would have spent when they are happy. The 2008 study “Misery Is Not Miserly: Sad and Self-Focused Individuals Spend More” indicates that consumers spend more when they are in sad mood. Also, in the research by the National Science Foundation, subjects were shown either a sad clip or a neutral clip. Following the clip, the subjects were allowed to make a purchase. Recipients of the sad clip were willing to pay almost 300 times more for their purchases. When you are sad, depressed and angry, do not go shopping, if you want to go leave your cards at home. Spending is not a competition, do not be jealous of heavy spenders, they may be heavy debtors.
Allow Your Budget To Decide Your Spending
Budget is like the outline of an essay. It guides you on how to arrange the paragraphs and what to write. If you do not have a budget based on your income, it is like writing an essay without an outline. Your work will lack quality content. Make a budget within your means. Prioritize your needs, this will guide your spending. Make financial goals. Avoid any spending that will get you into debt. Allow your financial goals help you to avoid overspending.
How To Avoid Credit Card Overspending : Purchase Only What You Need With Your Credit Card
A credit card is not for increasing your spending power. It is not for buying what you cannot afford or need. To avoid running into debt, buy only what you need and can afford to pay back at month end.
Keep Your Credit Cards
If you really cannot spend without a credit card, then keep it hidden. Do not go out at all with it. This will surely drive you to reduce spending. You can go out with your credit card only when you’re shopping for a particular purpose.
Reading everything I have written is not enough. The best advise is the one you give to yourself. Decide that you do not want to be overspending, take action and watch yourself avoid debt. This will give you financial freedom and some peace of mind.