Credit cards can be fantastic financial tools. Credit card use can make tracking your personal finances easier. They also give the holder more buying power and flexible payment methods. However, irresponsible use of a credit card can be a very slippery slope. Spending can become addictive, and a tool like a credit card only fuels the fire. If you find yourself unable to make adequate monthly payments and constantly maxing out your credit limits, there are some tips to help you.
Here are 4 tips for reducing your dependence on credit cards.
1. Reduce overall spending.
This should be your first step if your credit cards are getting you in trouble. Becoming a smarter shopper and cutting out useless spending will give you less overall expenses. With less expenses, you will have less reason to use your credit card. Make a conscious effort to become a smarter shopper by clipping coupons, looking for deals and comparison shopping. Dine out less, skip the 2nd $8 martini, go to a cheaper gas station…all of these small adjustments can drastically improve your financial standing and lessen your dependency on credit cards.
2. Use a debit card.
When you use a debit card instead of a credit card you can only spend what you have in your bank or credit union account. This limits your spending and keeps you on your household budget.
3. Sell things you no longer need or cannot afford anymore.
Got a second car you rarely use? Have a treadmill or exercise equipment that you have been meaning to use but are too busy? How about your older smart phones, ipods, ipads, iphones? Sell them for cash and use that to pay down your debts.
4. Increase your income with freelance work or a second job.
When you cut your expenses and increase your income you can quickly reduce your credit card bills. You may only have to add a second job for a few months as you work to pay down your debts.
You can also seek debt relief help such as debt consolidation or debt settlement to help you when you are drowning in debt.
Now you know 4 tips for reducing credit card dependency.