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Tips to Help Lower Credit Card Spending in Copetown

Tips to Help Lower Credit Card Spending in Copetown

We have had similar queries from multiple customers over the past couple of weeks which is why the past couple of blog posts have been about budgeting and managing credit cards. That continues today with a quick overview of managing credit card spending.


Get on top of credit card spending and you can better afford auto loan payments or save faster for a down payment, as our Copetown auto loans team explains.


What follows are a few scenarios we have seen over the past couple of weeks and potential solutions. We hope they help!


You find it too easy to spend on a credit card


You use a credit card for daily expenditure as you should but find yourself spending more on impulse buys or online shopping.


You’re not alone, we are all guilty of finding it very easy to spend money on a credit card because it isn’t real money. All you need to do is put in your credit card number and the item appears. No real money changes hands.

Until it comes time to pay the card.


Solution: Use cash for daily purchases or a debit card for larger ones. Leave the credit cards at home and use cash for as much as you can.


Or, use a prepaid credit card. These don’t use credit but a cash balance you have to deposit to use the card.


These won’t help build your credit score like using a credit card will but will help control spending.


Minimum payments don’t make a dent


Making the minimum payment on credit cards each month doesn’t even reduce the amount you owe. This is by design. Minimum payments are designed to help preserve your payment history, not pay down the card.


It’s a mistake to think of making minimum payments as paying off the card because you’re not. Owe more than a few hundred dollars and all you’re doing is paying interest, not paying down the card.


Solution: Think of minimum payments as preserving your credit score and not as paying the card. Prioritize your cards in order of the most expensive and pay off as much each month as you can afford.


Cut back on spending while paying down cards and gradually those balances will reduce.


You got a balance transfer card but didn’t pay it down


Balance transfer cards are very useful in minimizing the amount of interest you pay on credit card debt. They usually come with a fee and 0% interest for a set period of time.


It’s simple. Open a card, transfer your most expensive card balances to the card and pay it down.


Balance transfer cards are great during that interest free period but often work out more expensive than standard cards when that period is over.


Solution: Use a balance transfer card for as much of your credit card debt as possible. If you have other cards outstanding, pay those first as you’re being charged interest.


Once clear, pay down the balance transfer card as quickly as possible. Set a reminder for 14-28 days before the 0% period ends, find another balance transfer card with low fees and transfer all balances to that.


When you have no other credit card debt to pay, put all the money towards paying this latest card down as possible. Set another reminder, find another card at the end of the 0% period, rinse and repeat.


Get control of credit cards and saving for a down payment or paying off your auto loan will be much easier!


We will use all our skill and experience to deliver the lowest possible Copetown auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.


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