Simple Tips To Avoid Overspending On Your Credit Card

Fatin Haris

Fatin Haris

Last updated 18 July, 2022

A credit card is often associated with debts and overspending, but you can turn it into a useful tool to help you build a credit score history and earn rewards. Check out these simple tips to avoid overspending on your credit card. 

Plan your purchase every. single. time.

Imagine swiping your credit card every time you like something without weighing its pros and cons. This is actually a common mistake for first-time credit card users! Therefore, We recommend that you plan your purchases every single time.

Make it a habit to ask yourself the following questions before making any purchases:

  • Do I need this?
  • Can I afford this?
  • Can I buy this cheaper elsewhere?
To make sure you’re making the right decision, you may want to wait at least three days before purchasing anything. This method will allow you to think and consider each purchase. The next time you’re going shopping, try to implement the tips above and stick to your shopping list! 

If you’re an impulsive shopper, we would recommend you to leave your credit card at home when you’re going window shopping, which brings us to our second point! 

Leave your credit card at home 

Yes! Leave your credit card at home, especially when you know you’re going window shopping or any outing that will lead to spending money unnecessarily. This will not only help you to avoid overspending but you will also be forced to stick to your budget.

If you feel you need a more stringent approach, you can freeze your credit card-not literally, of course!. Check with your credit card issuer if they will allow you to freeze your credit card for other reasons apart from security purposes. 

Wondering if this will affect your credit score? Read more here.

Track your spending every day

Most people fail to remember that when you purchase something with a credit card, it means that you owe the credit card issuer money and you will have to pay it back. This is what makes credit card owners end up overspending and in debt. 

The easiest way to overcome this is by tracking your expenses daily. Try to jot down your purchases regularly. We would suggest doing so on your phone so you can access it anytime. We would also recommend you revise your budget sheet before going out so you have a rough idea of how much you should actually spend on that day. 

Related: Should you pay for your daily expenses with Cash or Credit Card?

Say NO to multiple credit cards

Should You Have More Than One Credit Card? Well, It's not wrong to own multiple credit cards... If you know how to manage multiple credit cards, it can be rewarding! 

However, having multiple credit cards is one of the reasons people tend to overspend, especially when the rewards offered by card issuers are appealing. Try to find one card that provides all rewards and benefits that are suitable to your lifestyle so you can get the most out of it. Check out all credit cards from major banks and find the one that suits you best, here

A credit card is a very effective tool to manage your finances as it offers rewards, points, and cash back, but it can definitely backfire if you fail to spend diligently. Try to plan your purchases, opt to leave your credit card at home, track your expenses regularly, and avoid having multiple credit cards to avoid overspending on your credit card.