Today we are more addicted to plastic money like never before. We are living in a time when we try to grab every luxurious item, products, cars as soon as possible. Each month, the interest on the unpaid bill become more and more and we started to live in constant fear on how to repay the credit card bill. If you are also burdened with high credit card bills and interests, then read on.
Use cash
Use cash for everything. Do not rely on plastic cards. It is always better to have a personal balance sheet. One can easily prepare it by using excel or similar tool. Here, add the weekly or monthly payout as inflow at the very beginning of each pay cycle. Next figure out the necessary utility bill and list them in outflow such as internet bill, phone bill, electricity bill, education bill, house rent bill, Policy Premium etc. Then add other bill under the same outflow column such as Dining, Movie, Travel, Shopping etc. Now calculate how much are you spending. Try to pay everything with cash. As one cannot ignore the utility bills, look into the other bill section. Pay attention to the different tabs where you can save money. This way you can save more and also use of credit card become minimal.
Pay bill online
Whenever possible, pay bill online using net banking. That means, whenever you are booking tickets, reserve a hotel or paying utility bill, use net banking facility rather using Credit Cards. This way you can track where you are spending your hard earned money. Also try to resist using credit card. This will take time, but if you try to avoid using it, then you can get rid of the habit of using a credit card.
Avoid online purchase
Today, we are all bombarded with promotion and advertisement for new, trendy products from different websites. They are offering heavy discounts and lure us in spending more through credit cards instantly. This way we are buying products which are not necessary for us. Marketers are so clever and so well aware about human psychology that they designed the system in a very lucrative manner and we are not able to ignore them. So we log in to these websites using our FACEBOOK account and then started to purchase.
It is always better to purchase products offline by visiting the stores and purchase the necessary products by paying cash. This way we are able to see and feel the product and also we can track the finance.
Earn interest
While paying the bills of credit cards, we are paying more as we are paying the basic amount with the interest, as well. Rather, if we think logically and invest the money in mutual funds or stock options or some good secure bonds, we can get more than what we have invested. We can earn more and can sleep peacefully. Also with the earned interest, we can get more better things in future. It is always better to start slowly and get the dreams fulfilled rather start faster and loose all of them in a minute.
We want better future for us, for our family, for our kids. By saving more we can secure that dream. But if we want to purchase all the products by using credit card, then it may create problem in day to day budget.
Say ‘NO’
It is better not to use credit card at all. If you fall in the credit card’s debt trap and not able to pay the amount in a particular month, you will go deeper in the debt trap. There is no need for extra bonus point or convenience. You can manage everything with little patience. Without credit card you may not be able to purchase the newly launched car or may not visit the most happening place in town. But if you wait a little longer, you can acquire them by your own cash.
If you wish to use credit card, always remember to use it up to 25% – 30% of your monthly salary. This way you can pay the credit card bill easily without any hassle. Also at the same time, start to save some amount towards contingency or for emergency.
Use credit card wisely and you will no longer have to worry. But using it without proper thinking may lead to financial and emotional harassment in future.
