When credit card rewards becomes a danger
One of the advantages of having a rewards program tied to your credit card is all the stuff you can earn, from goodies and airline miles to cash back. However, increasing your charge card spending to be able to generate these awards is a double-edged sword that can eviscerate your spending budget. Here's how to avoid the perils of excessive charge card benefits spending.
Steering clear of extreme charge card benefits spending step No. 1 - Stay awake
People always forget that they are spending cash and have to pay interest for it if not paid off at the end of the month. That means the best way to keep your credit card spending from getting out of hand is to pay very close attention to what you are spending. Knowing how much you spend is essential to steering clear of interest and paying it off each month. Keep track of it.
Avoiding excessive credit card rewards spending step No. 2 - Keep a log
Write down all your credit card spending to keep track of it. If your charge card offers an online program of sorts, try that.
Staying away from extreme credit card benefits spending step No. 3 - Save receipts
With credit card spending, you can keep away from writing things down at the store while you spend by getting receipts. Just keep the receipts in the event you need to return something, and you may also keep track of your spending.
Mint.com a good resource
You can monitor your spending at Mint.com where there are cash management tools. Sites like these can be linked to your charge card, so you can keep track of spending.
Help with more checking accounts
If charge card spending is a serious issue that you are working on, set up a second checking account - ideally, a free checking account - that is dedicated to paying down the card. Only do this with the second account and it will help.
Avoiding extreme credit card rewards spending step No. 6 - Pay weekly
Many people like to pay their charge card bill each month, but it is much better if you can pay it off every week. It is a good idea to make weekly payments so you can spend as much as you want on the card and still get rewards while staying away from additional interest.
Steering clear of extreme charge card benefits spending step No. 1 - Stay awake
People always forget that they are spending cash and have to pay interest for it if not paid off at the end of the month. That means the best way to keep your credit card spending from getting out of hand is to pay very close attention to what you are spending. Knowing how much you spend is essential to steering clear of interest and paying it off each month. Keep track of it.
Avoiding excessive credit card rewards spending step No. 2 - Keep a log
Write down all your credit card spending to keep track of it. If your charge card offers an online program of sorts, try that.
Staying away from extreme credit card benefits spending step No. 3 - Save receipts
With credit card spending, you can keep away from writing things down at the store while you spend by getting receipts. Just keep the receipts in the event you need to return something, and you may also keep track of your spending.
Mint.com a good resource
You can monitor your spending at Mint.com where there are cash management tools. Sites like these can be linked to your charge card, so you can keep track of spending.
Help with more checking accounts
If charge card spending is a serious issue that you are working on, set up a second checking account - ideally, a free checking account - that is dedicated to paying down the card. Only do this with the second account and it will help.
Avoiding extreme credit card rewards spending step No. 6 - Pay weekly
Many people like to pay their charge card bill each month, but it is much better if you can pay it off every week. It is a good idea to make weekly payments so you can spend as much as you want on the card and still get rewards while staying away from additional interest.
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