Nowadays, having credit cards seems to be a privilege to most Filipinos. And now that banks are becoming less and less strict when it comes to the application process and requirements, the number of consumers having one or more credit cards in their wallets is increasing. Possessing credit cards is fine. It’s not a threat to your lifestyle if you use it properly. But how do you really avoid overspending using your card when you have a high credit limit that you can use to spend on different things? How do you become a conservative spender?
Catch me in my live training events! (quick plug)
The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.
Stock Smarts Singapore — May 18 & 19, 2019
Investment Conference 2019 – May 25, 2019
Stock Smarts Manila — June 15, 16, 22, 23, & 29, 2019
Stock Smarts Iloilo – July 6 & 7, 2019
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
Stock Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar — October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019
You can either write it down on a piece of paper or record it on the notes application of your phone. Keep your receipts and continue monitoring the things you spend on. List down all the activities you do with your credit card, whether it is an expenditure or payment. In that way, you can keep track of how you spend and how you pay.
Know your cut off and due date. Paying your credit cards on time will help you avoid big charges like interest and late fees. This is one of the major reasons why people with cards are getting drowned in debts. They don’t pay on time. They think that paying less than the minimum is fine. What they don’t know is that as you elude from paying the full amount at the right time, the charges keep on compounding until it becomes higher than the principal amount. The compounding interest becomes the advantage of the bank. So, always prioritize paying on time to avoid this.
Credit cards are still loans. It is not something you should use just to show to everyone that you can buy the most expensive and latest gadgets in the market. If you want to buy those things, save and purchase it in cash. The likelihood of paying high interests when you use your card to buy expensive material things is very high. Use your cards for extra expenses only. The best way to avoid overspending is still by paying in cash.
If you find it too hassle to pay your card every month, you can switch to using debit cards. The treatment of these cards in the store is almost the same. The only difference is that credit cards are loans and debit cards are savings. If you use your debit cards to purchase something, it will be automatically deducted to your savings. This means that you didn’t incur any charges or debts because it is still your own money. To young professionals and millennials out there who want to live a debt-free life, I recommend you to get your debit cards rather.