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10 Signs that you’re misusing your credit card


10 Signs that you’re misusing your credit card

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We all love the convenience of credit cards but it’s so easy to misuse them and one can quickly end up in a terrible debt situation! Take a look at these warning signs and think about them before you next swipe.

1. You don’t know what your credit card balance is

It’s easy to lose track and end up spending more than what you can afford to pay. You should get into the habit of checking your balance at least once a week to make sure you’re on track and that you haven’t overspent. It’s easy with a banking app.

2. You get stressed when you see your credit card statement

This is a definite warning sign that should get you a little worried. If you’re stressing about your statement then it means that you have spent too much and are likely in more debt than you realised. Listen to your inner voice and cut down on your spending. Rather focus on paying off some of the debt and getting your finances back on track.

3. You can only afford the minimum payment

This is a severe warning sign that you’ve misused your credit card! If you’ve reached this level then you really have to take action immediately and stop spending on anything that is not absolutely essential! It’s really hard to change your spending habits but only paying the minimum payment means that you will remain in debt for a long time and the fees and interest rates will cost you a lot of money! Debt is expensive and can easily get worse each month.

4. You purchase groceries on the budget facility

The budget facility on your card should only be used in emergencies or for planned expenses. Buying groceries and other essentials on the budget facility is a very bad choice and will quickly lead you into further debt. As soon as you need to start buying essential items on credit then you should know that something is wrong! Spend some alone time with your journal and see if you can work out a budget to help you manage your spending.

5. You have to apply for a new card as your current card is maxed out

Applying for a new card simply because your current one is maxed out is a severe sign of misuse and you should seek professional advice to help you out of your debt. The problem is that debt will never disappear and by taking out a new card you simply make the problem worse. Instead of burying your head in the sand, take charge of the situation and take action.

6. You shop when you’re sad

Retail therapy is a real thing and it’s dangerous for your credit card. The occasional shopping when you are sad can be helpful but forming a habit and using your credit card for short-term relief is really bad in the long run. The stress of debt will only make it worse and you could end up in a cycle of shopping to make you feel better about your debt which in turn makes you take more debt, and that stresses you more. It;s a vicious cycle.

7. You don’t worry about the price

A sure sign that you’ve become too complacent with that credit card of yours is when you shop without looking at prices. It’s interesting to know that using cash makes one more conscious of what we spend. Catch yourself next time you simply pick up an item…

This is an excerpt from the Take charge of your money blog. See the full article here. Reposted with permission.

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My name is Brendan and I’m a software developer working a regular 9 – 5 job. I’m 40-something years old, married and living in Cape Town (South Africa). I often wish that I didn’t need to “slave away” at my job as there is so much that I would love to be doing! Life is short and I want to make the best of it and hence I am forever working towards a goal of financial freedom and the idea for my blog is to create a collection of thoughts, ideas, tools, useful videos etc that are helpful to me, and hopefully to you too!

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