Credit is one of the names of purchasing capacity today. Other than how many briefcases it will take to contain all your cold cash, the credit limit is one of the definitive indicators of a person’s monetary power. There is a myriad of reasons to use credit cards over cash. For one, credit cards help you do away with carrying bulks of cash. This little plastic card also brings in a number of rewards that you can use when shopping and travelling. It is also something that you can rely on during emergency situations.
There are, however, some downsides of using a credit card. The most obvious one is it gives you a false sense of power—the feeling that you can buy almost everything. But this shouldn’t discourage you from using it, especially if what’s in your hands is in the league of American Express credit cards, which usually offers good and flexible terms. All it takes is a good outlook on your capacity and some control.
Here are some more tips:
Decide When to Use Your Card
Credit cards are supposed to be for everyday use. There are a number of situations when cash proves to be safer than credit. For instance, instead of paying for everyday lunches using your plastic card, shell out cold cash. You’ll find it devastating when you see that your statement at the end of the month is broken down into fancy lunches and other trivial expenses.
Make a List before Going on Shopping
One of the major reasons behind overspending using credit is impulse. Impulse purchase comes to be when you’re not prepared or when there’s nothing to guide you, like a list. On your list, make sure that particular items will go on credit, while the rest is on cash.
Use other Spending Methods
There are spending methods other than using cold cash and credit. Have you considered using your mom’s coffee gift card? While coupons aren’t exactly a legal tender, you can use them to save up on expenses.
Other than notifying your provider that you’re not going to use your card for a while, you can literally freeze it. This is in case you fear that you can’t control your spending, but still need something in case of an emergency.
Controlling your dependence on your credit card needs a lot of conditioning and will power. Moreover, you need to partner with a credit card company with good terms and conditions, like American Express.