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Solutions For Overspending

  • Know yourself. Has having a credit card on hand gotten you in trouble? We constitute credit card trouble as not being able to pay the full balance every month. If this is familiar, leave your credit cards at home. Remember that closing credit card accounts is not necessarily the best move, as you could lose the history you’ve established. Instead, contact the card company and verify what fees they charge for inactivity and cut the card up so it is unavailable for use.
  • Don’t treat your credit card like your debit card. Even if you dutifully pay your credit card balance in full, did you know that you are likely spending more than you would if you were handing over cash to pay for the same goods? Consumer psychology teaches us that when we pay with hard currency (cash) we are more aware of the cost, whereas with credit cards, we focus on the product benefits and are easily swayed to spend more.
  • Evaluate wants versus needs. You will likely need a pair of boots for winter in Duluth, but do you need a pair that cost $200? While it is true that buying quality items which cost more will likely last longer, make sure that your reason for the purchase is a true need.