Controlling “Credit Card habits” sounds impossible as I would like to mention that I am also from one of those people who has used a credit card to pay off another credit card. It’s about two years when, I was living my life worry-free, making money and having fun. Whenever my friends tell me to go outing or for vacation on that period I say why not and go out for weekend’s vacations, parties. Never thought about budget or future, just enjoyed moments.

That dive me into more and more debts, which I continued to ignore, never worry about the future problems hoping it would take care of it. Then the turning point comes when I checked financial reality which shocked me when I saw credit card bills. But I was $000,000 (six figures) in debt before I got to that point.

It is up to you but, I recommend you not to wait as long as I did. It’s possible to change your credit card habits. Here’s how.

Table of Contents

  1. Check What You Have Done
  2. Stop Playing Into the Drama
  3. Make New Habits
  4. Use Your Card as Advantage
  5. When You Do Spend, Buy Things That Last

Check What You Have Done

Gather you’re all Credit card statements and calculate the total amount which you have spent. Divide it in twelve or months to see the exact monthly figure which you have to repay. And also see the monthly required expenses which you require must and then try to repay more so that you could repay Credit card payments.

Sometimes you spent more than your pocket and it seems to be impossible to pay for every income you earn. If there is installment option available then divide the whole amount of debt in 24 or 36 months installment, which gives you time to pay off debts. I suggest you to stop using your credit cards until you get to a place where you are able to pay off the entire balance in full each month. Change your habits, so that you will never get into these situations in future.

Stop Playing Into the Drama

Recently the Federal Reserve of  United States of America announced that Americans had hit over $1 trillion in credit card debt. The Credit card debt is the highest it’s ever been in U.S. history said by FR of USA, and everyone seems to have a horror story to tell. Well, it’s time to stop listening to your own trauma and drama and start looking at what actions you can take. At one point I got three different jobs, rather than sit and complain to my friends and family about my debt.

Whenever someone offered me paying work anytime, I took it. Some of the jobs I loved; some of them I hated. Some were really slow. None of it mattered. It depends upon you but, I was constantly looking for what else I could do to make more money and put a dent into my debt.

Make New Habits

Our elders, parents, and teachers always taught us, that the value of money is spending it or saving it to spend later. How many people pay off their credit cards and think, “Great! I’ve got another $10,000 (or whatever their credit limit is) to spend?” I think no one in my knowledge.

Start a new habit. Allow yourself to have money in your life and watch it grow. One of the best tools for this is the 10 percent account. That’s where you put away 10 percent of every single cent you get as a gift to yourself. It’s not your emergency fund or to pay bills. It’s about being grateful for you.

When I first started my 10 percent account, I was still in debt. Even though it made no sense, I started putting aside 10 percent, and after three or four months, I no longer had panic and stress about money. It changed the energy around money for me.

Use Your Card as Advantage

Having a credit card isn’t bad in itself. There are ways to use it to your advantage without creating more debt. I now use my credit card for a lot of different things. At the end of each month when I pay it off, I’ve usually accumulated a ton of miles on my frequent flyer card. That means I could get upgraded to business class or first class when I travel. That’s the joy of business. How could you use your credit card to your advantage?

When You Do Spend, Buy Things That Last

Once you’ve gotten a handle on your debt by changing your credit card habits, try using your credit card to purchase things of intrinsic value. You could start by buying a silver teaspoon to stir your coffee. Find out the price of silver and buy a spoon for less. Learn about things of intrinsic value that bring you a sense of wealth. If not a material object, what about a subscription to a publication that makes you rich in other ways?

To be clear, this is not financial advice. These are practical tools that will help you change your money habits – and your attitude around money – so try these approaches and see how they change your outlook.

 

Thanks for Reading…