One of the benefits of having a rewards program tied to your credit card is all the stuff you can generate, from goodies and airline miles to money back. However, boosting your charge card spending to be able to gain these awards is a double-edged sword that can eviscerate your budget. Here’s how you can stay away from the perils of excessive credit card benefits spending.
Always know what is going on
Right off the bat, the most logical way to make sure that you are not letting your charge card spending run amok is to reign in the spending and pay attention to what’s going on your credit card bill. Waving the magic plastic doesn’t mean that you won’t be paying with interest in the end – or in full. Knowing how much you’re spending and just how much you owe are imperative.
Keep it all written down
Anyone who does not like online statements should either try and start using online centers or monitor all credit card spending.
Receipts are the key
How do you keep an accurate count of what you are spending? Keep the receipts! You’ll need them for those who have to return something, and pocketing purchase records makes it unnecessary to write things down on the spot – because nobody likes those people, honestly.
Use a website to help
You can link your charge card to Mint.com and keep track of all spending at it. The website offers money management tools and budgeting tools to help you keep track of spending.
A second account
If credit card spending is a serious problem 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.
Staying away from extreme charge card benefits spending step No. 6 – Pay weekly
The standard for paying a credit card bill is to pay once per month. However, to pay a card off more quickly and minimize interest, making weekly payments where you pay off whatever was charged that week is a good idea. You’ll accumulate rewards and avoid having to pay interest.
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