Having a credit card is very convenient and has many advantages. But with its advantages comes its disadvantages. Since you can always buy things without carrying cash around, you are always tempted to buy something that you want but don’t really need. If you have excellent control on your finances then good for you. If you have a hard time managing your credit card, then these pointers can help you.

Get organized

First thing’s first, obtain your credit card records to have a better idea of your spendings. Be sure to double check the records for errors and ensure its accuracy.   Check the dollar amounts and also any unauthorized charges.

Evaluate your credit card

Go over your recent credit card records and look at the interest rates. Some credit card companies have promos where they offer lower interest rates for a period of time and this promo may already be over yet you have no idea and are already paying at a higher interest rate. Also take note of the membership fee which they charge annually since some have very high membership fees. Consider cancelling this if you are not using it frequently.

Pay on time

It is important to pay your bills on time since it can have a negative effect on your credit record or rating. You will also be able to avoid getting charged because of not paying on time. Try asking the credit card company to remove the overdue charge if you have forgotten to pay it on time for the first time.

Manage your debts

If you see that you have more debt than what is comfortable, think ahead and plan out how you will repay it or at least reduce your debt. Devise a way to pay more than what is required so that you will have a reduced payment schedule. Prioritize the card that has the highest interest rate. If you have a hard time with shopping temptations, leave the cards at home.  If they are in your wallet, you are much more apt to use it.

Don’t bite more than you can chew

As the saying “don’t bite more than you can chew” goes, do not spend more than you can afford. True, a beautiful gold bracelet may be enjoyable to wear but, unless you pay that card off the following month, that gold bracelet could end up costing twice as much.

Better money management is something we all strive for.  After all, we have worked hard to earn that money.  Creating a budget to see where you spend your money will definitely help.

The first step to a manageable budget is to set a goal.  What do you want to achieve?  Do you want to save for a big purchase or a vacation? By having a goal, you will be able to create your budget to suit your needs.

The next step is where you would want to record where your money is spent. You will want to include bills, regular purchases (like groceries, healthcare, etc), and also everyday miscellaneous purchases. After monitoring your list, you will be able to spot which expenses you can do without.  How much do you spend on your morning coffee stop or going out to lunch every day?  The measly $2 or $5 of these small purchases can add up to a hefty sum each year! Instead of buying that new book, visit the local library, and read your newspaper online, and then put aside the amount you would spend on these small routine purchases.  You will be amazed at how much you save. 

The last step is to write down the amount you earn versus the sum of your bills and extras. You can make use of computer by using one of the many templates that Microsoft has, purchasing a cash management program (such as Quickens), or make your own spreadsheet. Make a system that works for you and will help you keep track of your monthly budgeting progress.

By following these simple steps you will have that bill paid off or will be packing for your vacation.

Would you like more information on setting up a budget?  Moms Talk Network’s ebook on setting up a Family Budget may be just what you need.