Have you told yourself that you need to stop using the credit cards, but find yourself pulling them out anyway? Each month you promise yourself that you are going to start paying back the cards, but then find your balance steadily increasing? Here are five tips to help you stop using those cards.
1) The best way to stop yourself is to stop carrying the cards with you. If you do not feel safe without a credit card (to pay a tow truck or to handle a similar emergency) then carry one with a very small limit, so you will not use it unless it is a true emergency.
2) If you are using the cards every month, then there is a leak in your budget. Find it and stop spending in that category. It can be as simple as realizing that you eat out too often, and so you are overspending in that category. Or it could that you consistently go over on your grocery spending. Once you plug the leak you should be able to stop using the cards.
3) Looking at the amount you are paying in interest each month may help you stop spending with the credit cards. Once that amount hits over a hundred dollars a month that has got to hurt. Think of what you could do with the money every month. Then start paying down the cards so that you have the extra money.
4) Reward yourself if you go a whole month without using the credit card. You can buy a new outfit, go out to eat or get a massage, if you stop completely. Just be sure that you do not put the reward on a credit card.
5) Keep a list of your long-term financial goals posted where you can see it each day. This will remind you what you are working towards. Hopefully it will help you stay focused and help you to make the necessary day-to-day sacrifices you need to.
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Finding and Plugging the Leaks in Your Budget