Are you addicted to shopping? How to manage your credit card usage and keep a high credit score.
The financial aftermath of holiday sales can leave you feeling worse than how you felt going into the holiday weekend or even into the department store. It is an odd occurrence when you get the strong urge to go shopping during the same moments you realize that you are in major DEBT. It is possible that consumers are so consumed with their consumptions that when it comes to dealing with their debt, they can’t think of any way out of it except to spend more money.
If you think in terms of a person who has an addiction to alcohol or eating. The addict will begin with using drinking or eating as a way to cope or participate in an area of their life. Then, it starts to be used in more areas of life in more ways and transforms into addiction or problem. In a sense, the addict will attempt to use their addiction as the cure for their addiction. Outside looking in, it doesn’t make much sense, but inside looking out, there doesn’t seem to be any other way.
Ok, so maybe you are not a fullblown addict. Maybe you dabble in the occasional seasonal shopping binge or spend money in moderation. From the frugal to the fullblown shopaholic, money tends to be something that is used to acquire a need or want. Here are a few tips to keep you from going from frugal to fullblown shopaholic:
Manage the number of your credit cards/accounts
2-3 revolving credit accounts is plenty for you to maintain a positive credit life. Keep in mind that in order to have your credit accounts working positively for your credit score, you should keep your balance to limit ratio at 19% or less and make your monthly payments on time every month.
Take inventory of your credit cards/accounts
Maintain credit cards/accounts that fit your lifestyle. Keep in mind that if you don’t use your credit cards/accounts, some creditors will lower your limit and/or close your account altogether. Try to consider opening credit cards/accounts that you may be able to use in the long term and in various ways.
Become familiar with the terms of your existing and future credit cards/accounts
By knowing the terms of your credit lines, you will be more likely to take into consideration how you use and pay on your credit lines. This may save you unnecessary purchases and help you to avoid paying interest charges and/or fees associated with the credit line.
Remember your Grandma!
Older generations remember a time when credit was really only used on an asneeded basis. They would not have dreamed of using credit for things that they knew they couldn’t afford this month or next. They also didn’t use credit for things that they absolutely didn’t need. Think of how different your life would literally look like if you would follow this tip!
The last thing you want to do is for your spending to get so out of control that you really feel stuck in a financial breakdown. Click on the link to hear one woman’s story of hitting financial rock bottom:
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