Simple Ways To Avoid Overusing Your Credit Card

Credit card debt is something that many of us have become accustomed to. The reality is, the vast majority of American households not only have credit cards but carry balances on those cards from month to month. Unfortunately, much of this credit card debt is due to overuse of these cards. Taking this too far could put you right in the middle of a financial hardship. Another unfortunate twist to this entire thing is that understanding credit cards and debt is not a course taught in your average school. As consumers, we just try to wing it! Well, below is a little bit of guidance to help you avoid overusing your credit cards…

Know And Control Your Debt To Income Ratio

Your debt to income ratio is a factor included in the calculation of your credit score. And, for good reason! If you have too much debt for your income to afford to pay back, chances are, the lenders will have an extremely hard time getting their money back. It is important to keep your total credit card balances below 10% of your annual income. Doing so and budgeting properly, you should have no problem paying your debts back. However, if you calculate your debt to income ratio and find out that it’s over 10%, you may want to stop using your credit cards all together until you’ve brought your ratio down.

Think Logically At The Checkout

As consumers, we are bread to spend with no regard for future consequences. Don’t become another slave to consumerism! Challenge yourself to think logically when it comes to the use of your credit card. Before you ever use your card, you should always ask yourself, “Can I afford to pay this purchase off along with the rest of my credit card debt within the next 6 months, should I have to?” and, “Is this purchase a need or a want?”. If you find that you don’t necessarily need what you are buying, you shouldn’t make the purchase. If you think that the purchase will make it impossible to pay off your debts within 6 months, you shouldn’t make the purchase.

If All Else Fails, Choose An Extreme Option

As consumers, many of us need credit cards as a financial pillow. However, the drive to use their credit cards outside of emergencies has caused many households to undergo financial hardship and in extreme cases, even bankruptcy. If you really want to stop using your credit card for non-emergency purchases but it burns a hole in your wallet, I’ve got a great option for you. Put your credit card in a freezer bag and fill the bag with water. Now, put the bag in the freezer and forget it was ever there. If you want to make a frivolous purchase, you probably won’t be willing to clean up the mess to get to your card. But, if you need something in an emergency situation, cleaning up a little water is a cost you will be willing to pay!

About The Author – Joshua Rodriguez

This article was written by Joshua Rodriguez, proud owner and founder of CNA Finance and avid personal finance journalist. Join the conversation about this article on facebook or Google+!

29,911 Responses to Simple Ways To Avoid Overusing Your Credit Card
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Simple Ways To Avoid Overusing Your Credit Card

Credit card debt is something that many of us have become accustomed to. The reality is, the vast majority of American households not only have credit cards but carry balances on those cards from month to month. Unfortunately, much of this credit card debt is due to overuse of these cards. Taking this too far could put you right in the middle of a financial hardship. Another unfortunate twist to this entire thing is that understanding credit cards and debt is not a course taught in your average school. As consumers, we just try to wing it! Well, below is a little bit of guidance to help you avoid overusing your credit cards…

Know And Control Your Debt To Income Ratio

Your debt to income ratio is a factor included in the calculation of your credit score. And, for good reason! If you have too much debt for your income to afford to pay back, chances are, the lenders will have an extremely hard time getting their money back. It is important to keep your total credit card balances below 10% of your annual income. Doing so and budgeting properly, you should have no problem paying your debts back. However, if you calculate your debt to income ratio and find out that it’s over 10%, you may want to stop using your credit cards all together until you’ve brought your ratio down.

Think Logically At The Checkout

As consumers, we are bread to spend with no regard for future consequences. Don’t become another slave to consumerism! Challenge yourself to think logically when it comes to the use of your credit card. Before you ever use your card, you should always ask yourself, “Can I afford to pay this purchase off along with the rest of my credit card debt within the next 6 months, should I have to?” and, “Is this purchase a need or a want?”. If you find that you don’t necessarily need what you are buying, you shouldn’t make the purchase. If you think that the purchase will make it impossible to pay off your debts within 6 months, you shouldn’t make the purchase.

If All Else Fails, Choose An Extreme Option

As consumers, many of us need credit cards as a financial pillow. However, the drive to use their credit cards outside of emergencies has caused many households to undergo financial hardship and in extreme cases, even bankruptcy. If you really want to stop using your credit card for non-emergency purchases but it burns a hole in your wallet, I’ve got a great option for you. Put your credit card in a freezer bag and fill the bag with water. Now, put the bag in the freezer and forget it was ever there. If you want to make a frivolous purchase, you probably won’t be willing to clean up the mess to get to your card. But, if you need something in an emergency situation, cleaning up a little water is a cost you will be willing to pay!

About The Author – Joshua Rodriguez

This article was written by Joshua Rodriguez, proud owner and founder of CNA Finance and avid personal finance journalist. Join the conversation about this article on facebook or Google+!

29,911 Responses to Simple Ways To Avoid Overusing Your Credit Card
  1. Autoradio Einbau Tipps
    March 25, 2019 | 2:04 pm

    This design is wicked! You definitely know how to keep a reader
    amused. Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Great job.

    I really enjoyed what you had to say, and more than that, how you presented it.

    Too cool!

    Visit my blog post :: Autoradio Einbau Tipps

  2. psychic reading
    March 25, 2019 | 2:13 pm

    What’s up, all the time i used to check weblog posts here in the early
    hours in the dawn, because i enjoy to gain knowledge of more
    and more.

  3. frozen food delivery services
    March 25, 2019 | 2:13 pm

    You actually make it seem so easy with your presentation but I find this matter to be really
    something that I think I would never understand.
    It seems too complex and extremely broad for me. I am looking forward
    for your next post, I’ll try to get the hang of it!

  4. Greengate
    March 25, 2019 | 2:17 pm

    Having read this I believed it was very informative. I appreciate you spending
    some time and effort to put this content together. I once
    again find myself spending a lot of time both reading and posting
    comments. But so what, it was still worth it!

  5. 8g phone
    March 25, 2019 | 2:22 pm

    moblie phones for sale

  6. Domain Authority
    March 25, 2019 | 2:22 pm

    Your style is really unique compared to other people I’ve
    read stuff from. Many thanks for posting when you’ve got the opportunity, Guess
    I will just bookmark this blog.

  7. shopping sites with free shipping
    March 25, 2019 | 2:23 pm

    cheap fashion sandals

  8. oppo knee support
    March 25, 2019 | 2:38 pm

    oppo a37 for sale

  9. Running
    March 25, 2019 | 2:48 pm

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    a quick visit this web page and be up to date every day.

  10. 411 information online
    March 25, 2019 | 2:51 pm

    Hi there, I read your blogs daily. Your writing style is awesome, keep it up!

Leave a Reply


Wanting to leave an <em>phasis on your comment?

Trackback URL http://mynextbuck.com/simple-ways-to-avoid-overusing-your-credit-card/trackback/