Once we had no idea we could buy whatever we wanted without using actual money. Now we have nice and shiny credit cards. Tiny pieces of plastic make all our dreams come true. The main profit they give us is living the life we want right now, but paying for it later.
This approach turned us into the consumer society that keeps growing its appetites. For instance, about twenty years ago one credit card was enough. Now, look into your wallet. How many do you have? I can count five in mine.
It means that we are no longer satisfied with what we get, demanding more goods and services. This rush makes us forget to take care of our finance. It is important to stop, look around and start planning a monthly budget.
Cash back cards
Big banks offer clients various special loyalty programs. But the most reliable ones will return their customers up to 25% of their expenses.
The only condition they have – clients should pay for their purchases via PDQ machines only. Some banks band another virtual bonus account to a regular one. The others simply add funds at the end of the month to the bank balance.
It is strongly advised to learn about all of the card types and conditions of their usage before choosing one. Try different banks and see what they can offer.
Simple tip kills two birds with one stone. First of all with little cash in our pockets or wallets we reduce the threat of robberies. Even if it happened – one tap on a tablet or a smartphone blocks all cards.
The second one – save money and get awards. No withdrawals mean no fees. No matter what account type we use – mostly we pay the banks for using ATMs.
Here we should add the scientifically proven fact – we give away cash much easier than money from our credit cards.
Pay in full
So as not to get stuck into a debt pit, clients should pay their credit cards in full each month. The line between what we can pay and what we cannot is almost invisible. It is wiser to stay away from point of non-return, paying all we have to the fullest.
Start planning your expenses. This small practice helps people notice how much they spend on items they do not actually need. Put down main items you have to pay for each month, like rent, facilities, food, etc. And then see what is left for hobbies, parties and so on.
Heed these small tips and you will never get into trouble with banks!