How to manage Credit Card spending to save money

Have a credit card but finding you are over spending? This articles provides the best tips to control purchases on your credit card and manage it in an efficient manner to save money.

As the word credit denotes, it is a card giving you credit or in other words you owe money to a third person. Diners Club and American Express are the pioneers of the credit cards. In India Andhra bank is the pioneer. As the new generation banks are expanding their activities, popularity of credit cards are increasing.

Credit cards are popular in this era. The convenience and savings of travel time has given more popularity to it. Online purchase access also popularised the use of credit cards. It is going to be an inevitable part of modern busy life. But we have to be aware of the hidden dangers of mismanagement of a credit card. Most of the credit card users in India are from the" Y" generation. Youngsters are used to purchasing with the card without comparing the returns out of it.

The following tips will help to manage credit cards in proper manner.

Best tips on credit cards management

  1. As soon as you receive a credit card, be aware that the beautiful plastic card is not giving you free cash.

  2. Beware of consumerism. Apply the economic theory of wants, utility, satisfaction and price before you buy a good using your credit card. Be an Economist.

  3. Apply accounting principles of debit and credit. Make an excel sheet to record every purchase and payback of credit card.

  4. Be a zero debt personality.

  5. Do not fall to the gimmicks of the advertisements and marketing.

  6. Do not buy anything to imitate or compete.

  7. Increase your value by acquiring more assets - Use credit cards to buy valuable things.

  8. Appreciate not depreciate - Use credit cards to buy goods that will appreciate in value - example – GOLD

  9. Redeem points - Be aware and note down your points and rewards acquired thru credit cards and redeem it in time.

  10. Keep a separate file for credit card statements and go thru the statements to confirm its correctness.

  11. Understand the charges carefully. If there is a wrong charge, contact the bank for rectification.

  12. It is not your companion. Do not carry it with you always; it may tempt you to make unwanted purchase.

  13. Discussion - Discuss with your family or friends before using a credit card. This will make you serious in using it.

  14. Be selective. Do not jump to believe in promises. Study the market and features carefully.

  15. Consultation - Consult a financial expert before you avail a credit card.

  16. Insurance - Remember some credit cards will provide you insurance and make use of it.

  17. Loss of job - Some credit card payment can be waived off, if you lose your job.

  18. Renewal - Monitor the renewal fees to confirm that it is as per the agreement.

  19. Destroy - destroy the closed credit cards.

  20. Closure certificate - Always make sure to get a credit card closure certificate and the guarantee cheque, if you have given.

  21. Try to avoid supplementary credit cards.

  22. Do not give the credit cards to others.

  23. Get a credit card from a most trusted bank.

  24. Do not link credit cards with home loan EMIs

  25. Schedule the repayment of credit cards in your devices.

  26. Monitor your online credit cards accounts while you are travelling.

  27. Make use of the discounts provided by the hotels, resorts and some outlets for using your credit cards.

  28. Do not use credit cards to withdraw money. The interest rate may be high for it.

  29. If the due dates for payment falls on holidays, make the repayment before the holiday.

  30. If the due date is not convenient for repayment, request the bank to give you a convenient due date.

Hope these points will be helpful to manage your credit card.

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Author: Swati Sarnobat22 Apr 2017 Member Level: Gold   Points : 2

Really useful article! To save credit card money, one should stop buying edible items because many people spend a lot during shopping by eating food such as pizza, burger and cold drinks, especially when you are with the family. They do not realize that the interest rate becomes still higher by not-paying on time. They can use debit card instead so that they can know the costs of buying such foods.

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