Financial Friday: Overspending on credit cards.

IMG_20170630_194154279There’s generally a brief moment of shock when totaling up my personal spends for a month, generally because it’s always that bit higher than I guestimate it should be. I had a larger shock than normal over July’s spending as, taking into the amount I spent on my credit card, I spent 50% more than I earned!

Now it’s been an unusually busy month but still; when the balance on your credit card threatens to wipe out the majority of your meager savings then I’m pretty sure there should be alarm bells ringing out for a change. Loud obnoxious alarm bells.

There’s a saying of “insanity is doing the same thing over and over and expecting different results”. So I’m going to change what I’m doing and take my cards out of action to give my accounts a chance to recover.

Just me and hard cash for the next few months.

Used correctly 0% credit cards can be a great way to protect larger purchases due to the protection they offer. They can give your cash savings a boost of accruing a few months more interest provided you don’t spend more than you have saved (oops). And the most deadly of all – they are often more convenient than carrying cash.

 That’s the true challenge here – being organised and planning ahead for lunches and days out.

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