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    Credit Card Overspending: Tips to get rid of it

    Credit cards have revolutionised the way we make payments. At the same time, many of us are equally addicted to them all the time. We do not realise the importance of using a credit card wisely, which eventually results in a debt trap.

    Most card issuers and banks offer tempting promotional offers, reward programmes, privileges and perks to attract customers. Hence, customers are tempted to apply for more cards without realising the hidden risks and challenges associated with them. Credit card addiction can bring down your credit score and spoil your credit history.

    Steps to help you get out of spending addiction

    Identifying the problem:

    While many of us live in denial about our lifestyle and credit card spends, it is very crucial to assess and address this problem in its initial phase. If you already have huge debts, you will need to take charge of your financial spends and accept full responsibility for your financial mismanagement.

    The following factors will determine if you are addicted to your plastic:

    • You use your card all the time for your transactions.
    • You often fail to make card repayments on time.
    • You are using multiple cards and do not keep a track of your impulsive spends.
    • You are unaware of APR bills, late payment fees, and other charges on your card.
    • You do not check your monthly bills to monitor your monthly expenses.
    • Your credit card debt information is not shared with your family.
    • The minimum payment on your cards is long due.

    Get a thorough understanding of your credit problems

    There could be multiple reasons associated with your credit card addiction. It is important to analyse the root cause of it. You may be addicted to the plastic because of your excessive shopping habits. The perks, privileges and promotional offers offered by credit cards may often tempt you to apply for more, which eventually results in huge debts. Therefore, you will need to first understand the causes of the debt before planning to address it.

    Taking the right path to clear your debt

    Once you get a complete understanding of your financial problems, the next step lies in addressing it effectively. In order to stay away from debt traps, it is always a best practice to implement the steps needed to clear your debts and stay consistent with it. What follows below is a list of steps that can help you curb the credit card addiction:

    • Rid yourself of any additional cards.
    • Avoid taking the plastic to all places.
    • Refrain from applying for any new cards unless the debt from your existing cards is fully cleared.
    • Do not lend your card to your family or friends for any shopping purposes.
    • Regularly check your monthly statements and pay your bills on time.
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