6 Ways To Control Your Expenses Using Credit Cards

Credits cards offer a lot of convenience these days as you do not have to carry cash in hands. It not only saves someone the trouble of carrying cash but also protects from being mugged. But, on the other hand, there are also some demerits of using this plastic money.  You can spend as much as you like within your credit limits as you know you don’t have to pay at once but this starts piling up your debt.

You can use some budgeting tips to keep your card spending in limits and enjoy all the benefits they offer.

  1. Track down your expenses

With credit cards, you can keep a track of all of your spending. You will know where you spent each penny with your credit card bill. In this way, you can use this very card to cut down every unnecessary expense and divide your monthly income only on necessary things. You can also use the previous month spending to make a budget for the next month. In this way you will allocate the available amount according to your needs.  In the times when your financial condition is worse, using credit card can worsen your position and when the interest is accrued you are surely going to face trouble.

  1. Pay more than the minimum amount due

It is better to go for paying more than minimum amount due. It is because you will pay more in terms of interest if you just pay the minimum due. But if you are paying more than the minimum payment, less interest will accrue and you will be able to pay your debt in lesser time.

  1. Use cash instead of credit

You use credit card when you do not have instant cash or want to pay later. But what if you are having some savings and you can use it for making purchases. Suppose you want to buy a new TV or a motor bike and you use your savings to pay for it, in this way you will be making a cleaner and interest free purchase.

Try to use credit card on your needs not wants. Keep it for the time when you don’t have cash to pay. In this way you will not be paying any extra interest charges.

  1. Using budgeting tables and software

You can use a simple pen and paper to write down expected and actual expenses. In this way you can track down the problematic areas and arrange your monthly income accordingly.

You can also use online software that help you track down your expenses after feeding the details of your income and expenses.

  1. Pay your credit within duration

One of the budgeting tips is that you pay your credit bill within the given time period so you will not have to pay any interest charges. In this way, you will save that extra money going in terms of interest expense but this will only be possible when you spend within your income limits and your paycheck is capable of paying that amount when it comes due.

  1. Use credit cards that offer rewards and cash backs:

If you are using the credit card for most of your purchases, go for the card that gives you facilities like cash backs and reward points. In this way, you will get discounts and points in the form of airline miles or rental discounts.