7 Deadly Credit Card Attitudes

Are you holy using your credit card for those emergency situations or is your credit card attitude driving you to the verge of a financial crisis?

We’ve heard it all before when it comes to justifying our credit cards to live beyond our means. If your current credit card bills are bigger than you can pay off at the end of the month, chances are you have one or more of these deadly credit card attitudes.

Using your credit card in retail stores

If you haven’t got the cash for it, it’s beyond your means. If you must have it, save up for it — and if it’s the last one in stock or on sale, step out of the store before you pull out your credit card. You’ll probably realize you can live without the item.

Using your credit card at the Supermarket

There is absolutely no reason to buy groceries on credit. You may be trying to collect points but there are other reward programs you can sign up for that don’t involve you swiping your credit card at the supermarket checkout. Using your credit card to collect points is a great way to make swiping your Visa a behavioural trait and eventually, just something you do on auto pilot. Pay it off the amount immediately if you insist on using your card at the supermarket and stay very, very on top of it.

When your limit is near, consider paying it off!

The credit limit is $400 away, so what’s the harm in charging a new set of linen to the card, maxing it out and paying it off? What difference does it make right? Wrong, if your cards are near their limit, your focus should be on paying them off as quickly as possible, not charging more things you really can’t afford.

Withdrawing Cash

Using your credit card as a temporary overdraft facility is a distinct no-no. The interest rates are phenomenal and instant. If you’re strapped for cash, use the overdraft facility with your regular bank account. If your bank doesn’t approve it then you know you’re seriously living beyond your means. It’s time for a budget diet.

“I need a credit card for flights and emergencies”

We’ve heard this one before and it’s true, you do need a credit card to book cheap flights online and for those just-in-case situations. But really, how many people only ever use their credit cards for booking flights and emergency situations?

Having multiple credit cards

Reward programs give people incentives to stock up more credit cards than they can service. Having multiple credit cards arms you with more spending power and eventually, you will use it. Despite the lovely rewards different credit cards promise, at the end of the day, you’ll end up paying back for it, with interest.

Turning a blind eye to monthly statements

Not looking over the bills to see how much was spent and how much interest is being paid is big reality check. You need to scrutinize your expenditure, not just skim over the statement and just refer to the amount due.

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