As we welcomed 2020, many of you have probably written some new year resolutions to start the new decade properly. One of the top considerations usually has something to do with better managing expenses.
But that can be hard to do, especially if credit cards are involved for virtually every expense. However, with conscious effort and a good understanding of your spending habits, curbing credit card overspending is manageable.
Here are some tips to get you on the right track.
1. Revisit financial goals
Before pulling out your credit card, ask yourself if you really need to spend on a particular item. Then take a step back to see the bigger picture, how does this expense help you achieve your overall financial goals?
Constantly revisiting the goals you set, whether as a new year’s resolution or a monthly commitment, helps you see expenses from a better perspective.
For instance, if one of your overall goals is to qualify for a business loan from a legal money lender in Singapore, it would be in your best interest to build a better credit score by avoiding unnecessary credit card expenses.
2. Mind your balance
Instead of looking solely at your credit limit, which is the maximum amount of money you can borrow from the bank, pay attention to your credit balance. The latter is a more realistic portrayal of actual spending and it will give you a better idea of how much and when you need to pay.
If you feel that your credit limit is too high, you can ask your issuing bank to lower the limit to a level that is more suited to your lifestyle.
Monitoring your credit balance will help avoid creating a false sense of purchasing power. Having a high credit limit is one thing, but it does not necessarily translate into a sustained capacity to spend money.
3. Cancel credit cards you don’t need
Managing expenses for multiple credit cards can cause a lot of stress and anxiety. If you have several cards, find out which one of them has been dormant for a considerable amount of time. It is likely that some of these cards are of no valuable use anymore.
If you’re contemplating on signing up for another credit card, make sure you’ve clarified the specific need for a new card.
While there is no fixed financial rule that dictates how many cards you should own, the number of credit cards at your disposal should mirror your spending and finances.
4. Bring your credit card for a specific purpose
The idea is to avoid bringing your credit card every time you go out.
The improvement in mobile technology can help make this convenient to do. Nowadays, there are many platforms that enable you to load a specific amount to your e-wallet or digital account without using your credit card. So if you didn’t bring enough physical money, you can often use your phone to make digital payments.
5. Confidently navigate your next step in life
Overspending can be very easy to do with a credit card in hand and this can negatively impact your credit score. By setting financial goals and effectively managing your expenses, you put yourself in a position to better navigate life’s financial challenges.
When you are in need of a secure line of credit, avoid going to loan sharks; always seek out a licensed and secure moneylender like Capital Funds Investment.
We offer short and long-term loans that help you gain stability and peace of mind.
Call us on (65) 6281 7736 or email us at email@example.com to find a loan tailored to your needs.