Be the Master of your Credit Card

Getting control of financial expenses is a challenging task and we want to get rid of this biggest stressful job. The age old prophecies of spending and savings are nowhere in sight. You want something and you just take it by swiping your plastic card! Who wants to wait for months to save to buy that flat screen TV, the new phone or tablet or even to have that dream vacation – thanks to credit cards and easy finance options that anything from everyday needs to all your dream purchases can be acquired in a split of a second. But, comes the statement date, and you start wondering about that outstanding amount that needs to be paid and your most of salary going into it. Do you find yourself in this similar trap often and struggle to pay?

I tried a few things to help myself stay within my budget rather than getting lured into overspending (which, of course, came after months of overspending!!). Now, I buy things with confidence – fully utilising those interest free days to pay off the balance and linked-up reward programs. You may try, it may help you too.

Set your own limits: I decide every month that I would spend only Rs x through credit cards. I have three credit cards, so decides their use too. One for all fuel expenses only, the second one for grocery shopping, phone bills, electricity, internet bills etc and the third one for my leisure buying and dining expenses. And now I know where my hard-earned money is going. And it’s surprising to see how little expenditures pile up over the month. It definitely serves as a wake-up call too for when to cut back.

Credit Card Transaction Alerts: Every time I make a purchase, I get the transaction alert via e-mail or cell phone text message, which not only helps in detecting any fraud quickly, but also to track my spending. So, I know how much credit availability I have – a good early warning that my spending is reaching danger levels. Control!
Track Credit Card Account Online: I don't wait until I receive the credit card statement to see how am I charged. Simply log on to my credit card account online frequently and monitor spending and the card balance, which helps me catch errors and handle them faster.

Debt Snapshot? - Well this is one thing most of us are unaware of, or even if aware of, hardly make use of it. By regularly monitoring a snapshot of my spending, I am able to understand how long it would take to pay off my credit card bill if I pay only the monthly minimum due, the interest and other charges that I need to pay there upon and plan accordingly. Also, many credit card companies and banks now offer flexi payment options where in you can convert your big buys into easy monthly installments at low interest rates on a reducing balance basis.

Well, one may say that what's new in all this, but important thing is to take action and control of your life. And these little steps help in big way. You should study your spending patterns and decide accordingly. And most importantly, do not get swayed into spending only to repent later.