Use credit cards and live within your means
Some Americans are afraid to use credit cards because they think it will lead to overspending. Here's how to stay on budget while using plastic.
This post comes from Gerri Detweiler at partner site Credit.com.
- Record your purchases the same day you make them.
- Don’t fall into the trap of using credit cards just to earn rewards unless you can pay the balance off in full each month.
- Ask your card issuer to change your due date to the end of the month.
- Use one card so you can keep better track of your total spending.
- If you find yourself using more than 30% of the available credit on a particular card, stop using that card until your balance is paid down.
"As long as you pay your bill in full, you will force yourself to to pay for purchases the same month you make them.“
The most reliable way to pay your bill in full every month (or at every purchase) is to use CASH. But then the CC companies would not be able to charge the vendor (and ultimately the customer) their 3% fee on every dollar spent. And if your carry a balance (even just "30% of available credit") tack on another 15%~30% interest. Is there an 'app' for living in denial?
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
ABOUT SMART SPENDING
LATEST BLOG POSTS
Saving just a single month of expenses may take longer than you think. See how your savings rate affects how quickly you can build a solid emergency fund.
VIDEO ON MSN MONEY
BLOGS WE LIKE
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'