How to... Use Your Credit Card Less

Do you like to shop? Most people do. We want to talk about a few ways to decrease your credit card usage.

First, figure out your interest paid from credit card usage per year. It is simple; use this credit card calculator:

http://www.indexcreditcards.com/creditcardcalculators/howmuchininterest.html

What we don't think about is how much money we are spending in interest every month. Credit cards often have interest rates that compound your balance daily. After a full month, your balance is going to raise unless you pay the full amount due. It's so easy to use a credit card; that's how credit card companies make fortunes! Here are some tips on using your cards less, without having to cut back on shopping!

1. When you go to a bar or restaurant, bring cash. This limits spending and you don't have to worry about being overcharged.

2. When you are shopping for nothing in perticular, don't bring a credit card. Only put charges on the card you plan on repaying at the end of the month. Impulse purchases tend to be expensive and harder to pay back within a month.

3. Ask your bank for a debit card, the money will come directly out of your bank account. Sometimes it may cost a .25C charge per transaction, but that charge is much less than say 20% interest on your purchases.

If you use a debit card, track your balance. If it is easier (like it is for us), have your bank setup online banking so you can see the balance in your account before spending $$. One or two overdraft fees can really make a dent in ones' bank account.

4. Finally, and most importantly, have automatic payments set-up through online banking billpay. This allows the companies to collect a monthly charge directly out of your bank account. You wont have to worry about paying for a stamp or losing a check in the mail; it is usually free to set this up!

Sometimes the little things can make your day a lot easier.

Thanks for reading!