Everyone in today’s world wants to be financially independent. There are a lot of ways how people gauge themselves as financially stable. Some take all the still assets into consideration while on the other hand some consider their liquid assets to be satisfied as financially independent.
There is a third type as well, who consider all their financial options to determine if they are stable financially. When considering all their financial assets they will also see their overdraft limit provided from their banks and the number of credit cards they hold.
Coming to the topic credit cards, who does not want one? Everyone wants to own at least one credit card merely because of the value it adds to your financial wallet. Once you own a credit card, you automatically consider yourself being at big leagues where you are bound to make luxury expenses. 70% of Indian people who own credit cards are sick of paying their debts and are finding ways to tackle card debts. Is it easy to tackle card debts? Will it harm me financially? How worse can it turn out to be?
There are a lot of questions which revolves around credit cards and how to manage them. Today, we will sight you five basic approaches to cut down your card spends,
Do not be in the perception that the bank is giving you a larger limit because they like you. They actually track your spending patterns and offer you a larger limit. This then leads to unwanted luxury expenses and by end of the credit card cycle you are with a huge payment due. Instead, try getting a card with low credit limit which can help you restrict on your unwanted expenses. For Example, if your salary is 50,000 INR try getting a credit card of 25,000 as basic limit.
This is one of the best practices associated to credit cards. Always try to automate your payments as many card lenders provide this facility and also it’s absolutely free of cost. By practicing this on your card routine, you will never miss you payments and hence you will not end up with a low cibil score.
Everyone in the world does this. They plan for something or the other and start following the plan. Same way, make budgets for you card expenses and try sticking to it. This will not only help you with slowing down your unwanted expenses but also will help you save a lot of money. There are a lot of applications which will help you sort a budget and also can help you sort out if you are exceeding your set budget.
Imagine you have spent a fortune of your card and you are confident that before your due date, there is a chunk of money incoming which can help you sort out your credit card bill. At last moment you get the news, the money which was in coming has failed. You think it’s not a big deal, I can settle for minimum due. DO NOT make this mistake! This can lead you to late payment charges, extra interest on the balance and many more which can seriously damage your financial health.
We know it’s easy for us to say, but leaving your card behind can help you to restrict your overspendings. Try paying for products and services in cash and try using a debit card instead. You only use your money to purchase anything instead of credit cards. This is one of the best ways to cut down your card expenses.
Please note, if you are tired of paying your credit card dues every time and planning to close the card account, do not do it!
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