Credit cards are a great way to make purchases because it saves you from the trouble of carrying hard cash everywhere. This means that you are saved from theft and losing your money.
But there is a problem with using credit card as well – Overspending. Those who do not have control on themselves tend to overspend with their credit card and this gets them into debt. The credit cards give you an extra limit to spend your money but you need to be careful about whether you can actually repay back this money or not.
Credit card repayments are your responsibility and if you are not able to pay on time then this starts attracting a huge penalty fee and interest on the outstanding amount. This is why you should clearly budget to manage your credit card repayments.
Pay your credit cards on time
Here is what you can do to manage your credit card repayments.
Write down everything that you pay with your credit card. Today almost everyone accepts credit cards so make a list of the places where you swipe the credit card with the amount that you have swiped. This will let you be aware of when you may be crossing the line.
You should also keep a part of your monthly expenses to pay towards your credit cards. So once you know what all you spend with your credit card you can start to budget them in your monthly income. You can set aside money towards grocery, household purchases, entertainment etc. and save this money separately. Once you have swiped your credit card to make these purchases you can now go ahead and pay the outstanding bill using the money that you have already saved. This way you will not go overboard with your spending.
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