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Old-fashioned is in: Save and spend
Most of us have suffered from this unnerving urge to buy something knowing well enough that we don’t have the means to pay for that expensive item. We bill it to our credit cards and hope the enjoyment of the object will help us forget its price. Of course, we may well be able to forget, but your card company does not, and very soon you will be saddled with a debt so huge, you wouldn’t know how to begin repaying.
One of the most difficult questions to answer is how to keep your credit card debt under control. But when you think of it, it is not such a difficult task. All you need is to treat your credit card as a plastic check. Try this little trick that some people have used successfully.
Every time you use your card, enter this transaction into your checkbook. Also, don’t forget to debit your checking account for that sum. Then ensure that you pay the total every month. Another important thing: Only spend how much you have in your bank. Don’t overspend and keep a check on your balance sheet. Try to avoid going into the red and the minute you feel that your balances are diminishing, exercise some self-restraint and control your expenditure.
Another thing you could do is to make major purchases in cash or using your debit card. This way, you will control your purchases, and slowly but surely, your urge to overspend will also be curtailed. This may seem difficult initially, but if you stick to it, you will find your bank account growing stronger again. Agreed, it may seem old-fashioned but if you do it this way, then you can rest assured that you will not overspend or be saddled with a debt that you cannot repay.
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