One of the benefits of having a rewards program tied to your credit card is all the stuff you can gain, from goodies and airline miles to cash back. However, increasing your credit card spending in order to earn these awards is a double-edged sword that can eviscerate your spending budget. Here's how to stay away from the perils of extreme charge card rewards spending.
Staying away from excessive credit card benefits spending step No. 1 - Stay awake
People always forget that they are spending money and have to pay interest for it if not paid off at the end of the month. That means the best way to keep your credit card spending from getting out of hand is to pay very close attention to what you are spending. Knowing how much you spend is important to staying away from interest and paying it off every month. Monitor it.
Know what you are spending
Anyone who does not like online statements should either try and start using online centers or keep track of all credit card spending.
Avoiding excessive charge card benefits spending step No. 3 - Save receipts
How do you keep an accurate count of what you are spending? Keep the receipts! You'll need them when you have to return something, and pocketing purchase records makes it unnecessary to write things down on the spot - because nobody likes those people, honestly.
Mint.com a good source
You can monitor your spending at Mint.com where there are cash management tools. Websites like these could be connected to your credit card, so you can monitor spending.
Bank account to help
If charge card spending is a significant issue that you're working on, set up a second checking account - ideally, a free checking account - that is dedicated to paying down the card. Only do this with the second account and it will help.
Pay it off every week
Some people like to pay their charge card bill every month, but it is much better if you can pay it off every week. It is a good idea to make weekly payments so you can spend as much as you would like on the card and still get benefits while steering clear of additional interest.
Staying away from excessive credit card benefits spending step No. 1 - Stay awake
People always forget that they are spending money and have to pay interest for it if not paid off at the end of the month. That means the best way to keep your credit card spending from getting out of hand is to pay very close attention to what you are spending. Knowing how much you spend is important to staying away from interest and paying it off every month. Monitor it.
Know what you are spending
Anyone who does not like online statements should either try and start using online centers or keep track of all credit card spending.
Avoiding excessive charge card benefits spending step No. 3 - Save receipts
How do you keep an accurate count of what you are spending? Keep the receipts! You'll need them when you have to return something, and pocketing purchase records makes it unnecessary to write things down on the spot - because nobody likes those people, honestly.
Mint.com a good source
You can monitor your spending at Mint.com where there are cash management tools. Websites like these could be connected to your credit card, so you can monitor spending.
Bank account to help
If charge card spending is a significant issue that you're working on, set up a second checking account - ideally, a free checking account - that is dedicated to paying down the card. Only do this with the second account and it will help.
Pay it off every week
Some people like to pay their charge card bill every month, but it is much better if you can pay it off every week. It is a good idea to make weekly payments so you can spend as much as you would like on the card and still get benefits while steering clear of additional interest.
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