Finance Globe

U.S. financial and economic topics from several finance writers.
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How to Avoid Credit Card Abuse

How to Avoid Credit Card Abuse

Are you the type of person who is “dangerous” with a credit card? In other words, you have no restraint. If your plastic is in hand you won’t be able to stop until you make at least a few purchases.

There is nothing wrong with carrying a credit card. In fact, this is a good idea for many reasons, including the fact that it could come in handy in the event of an emergency.

On the flipside, those who abuse their credit card could soon find themselves in financial distress.

Here are three things you can do to avoid credit card abuse:

1. Track every purchase. Many people neglect to do this. Instead, they wait for their statement to arrive to see how much they have spent. This is a big mistake. If you aren’t careful, all those purchases could quickly add up. Is that a risk you are willing to take?

2. Leave it at home. If you are the type who can’t control him or herself, leave your credit card at home when you head for the store. Use cash or your debit card to make purchases. This doesn’t mean you can be reckless. What it does mean is that you won’t have to concern yourself with running up a huge credit card bill. Instead, you can only spend what you have.

3. Cancel your credit card. This may sound harsh, but it is reality for many people. If your credit cards continue to get you in trouble, the best thing you can do is cancel your account once and for all. This will change your financial approach in the future, but at least you don’t have to concern yourself with credit card abuse any longer.

You may have made some mistakes in the past regarding credit card use. The three tips above will ensure that you don’t go down this path again in the future. And that is what matters most.

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Saturday, 24 August 2019

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