How to manage your Credit Card spending

Happy Chinese New Year, everyone!

Today I am going to write a post about how to manage the credit card. Firstly, I'd like to announce disclaimer: This post is basically actually concernly about how to manage the credit card. If you feel like, okie, Deb...I know what to do with my life (including manage my Credit card spending) then, please do not read the rest of the post. So without further due, Let's get started!

Before applying credit card, there are 4W and 1H questions you should ask yourself:

1. WHAT is the credit card for? is it for online purchasing? is it for buying something via installment?
2. WHICH bank offers good promotion? the credibility and reputation of the bank? promo that suitable for you?
3. to WHOM should you ask for queries? friends/ family/ bank representatives? find a third party opinion for better understanding.
4. WHY make you interest to apply Credit Card? To enjoy some discount? cash rebates? or (sorry for my straightforwardness) to show-off only?
5. HOW much the limit can I afford? HOW much the annual card-fee? double or triple up my monthly income?


The benefits:

1. Credit Card is useful when you want to track down your spending. With monthly statement send to your address, you'll know how much have you spent.
2. It is very useful for rainy days such as unexpected expenses, accident, overseas trip, and etc...
3. There are so many credit card promotions that allow you to enjoy discounts, cash rebates, earning points. At least you can still save ( a little bit) when you spend.


Okay, you got your Credit card on hand right now. How to manage your spending?

Tips to manage your credit card spending:

1. Always keep your receipt. This is to make sure that your monthly statement is tally with your spending. Unless you have a very good memory about what you've spent within a month, well...you can skip this. :-D

2. Think twice before swipe your card. Do build a habit of paying cash first and use credit card ONLY if there is a promotions. Your mindset must be, "well, I have enough cash to afford, there is no need for me to borrow from bank ( meaning swipe credit card)."

3. Pay on time and in a full amount. This is to ensure that the bank dont charge you for any late/ interest charges fee. If you only pay the minimum stated in your monthly statement, you will incur 24.96% interest charges per annum.


Identify warning signs:

1. You build a habit of swiping credit card for every purchase thus hit the maximum credit limit.
2. You do not keep track of your spending anymore.
3. Most of your salary goes to pay credit card bill.

Remember people normally not fall into debts overnight, it is a gradual process, so if you feel that you have one of a warning signs above, do remember that Self- control is the key word to tackle this. If possible, clear all of your debts at once and keep your credit card at home. Use it only when you need it.


Hope these tips are useful for you. Ciao!



-Deb-