Have you ever wondered how you can reduce your expenditure on your debit or credit card? Well, I know a thing or two on how to do just that. First, you need to understand that the credit card companies charges your checking or savings account whenever you use the card to purchase something. Another thing is that withdrawing money from an ATM using a bank-issued debit card is chargeable. Therefore, if you withdraw too many times, you will be making the bank rich out of the fees they charge you. Being a spendthrift person obviously means that you credit card balance will reduce faster. In this article, we will look at all these situations and discuss the tricks you can use to minimize spending on the money saved in your card.
Firstly, you need to monitor how many times you use your card either when paying for something at the supermarket or grocery store because some companies charge you money. Then, again if you subscribe to online services and provide billing information, these e-commerce business will automatically charge you money every month even when you are not aware. All what you will see is a rapidly declining amount when you check the balance. Therefore, the best way to avoid all these charges and hidden subscriptions is to minimize the usage of your card to just the essential shopping activities. It makes no sense when you are charged monthly for a service you don’t even use. So go and classify all the essential and non-essential purchases and then limit your debit card payments to the essential ones. That way, you will manage the money stored in your card well.
Secondly, I have some experience with using debit cards issued by banks and other payment platforms online. You see companies that pay for services provided online contract payment providers like Paypal, Payoneer, Visa, and Mastercard. These companies often charge an annual fee for maintaining their cards. That is acceptable. However, if you use their cards to withdraw money for too many times through an ATM, the charges will increase. You will find that the charges are eating into your balance. You will not know where your money goes as time goes on. It is possible for a client to pay you online a high amount, but by the time it reaches you, it has significantly reduced thanks to their charges. The credit card companies as well as banks do that. Therefore, if you want to avoid these charges, make sure you withdraw substantial amounts from the ATM, which you can manage without worrying.
Thirdly and lastly, if you are a spendthrift person, who buys too many things or pays for too many services, you need to carefully manage the usage of your card. Split your money into cash, credit card, mobile money, and bank balance, among others. Then, the money saved on your credit card should be minimal so that you can reduce the convenience that comes with spending. In some cases, you will find people accumulating too much credit card debt to an extent that the credit card company confiscates their card. This is because of the convenience they have given themselves when it comes to paying for something. That easiness of swiping your card whenever you want to pay for something comes at a cost. And you can reduce that cost by reducing the number of swipes. Try to punish yourself by not carrying too much purchasing power whenever you are moving around. Leave your credit card at home if you can the next time you are going to a party. Minimize your spending as much as you can and that way you will keep your card balance from rapidly declining to zero or negative amount.
With those few ideas, I believe it is possible for you to level down the expenditure on the money stored in your credit or debit card. The conveniences that the credit card companies give you are good, but always remember that, it comes at a cost. And since you are out there working hard to make credit card companies register more profits, you should be frugal when using their cards. Reduce the number of times you use the card, limit your card usage to essential purchases, and avoid spending too much money whenever you have a credit card in your pocket. This way you will lower the likelihood of your credit card being cancelled or confiscated due to the mounting debt. Be wise and manage the money on your card carefully.
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