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How to Manage Credit Card Spending in Delhi

How to Manage Credit Card Spending in Delhi

As credit cards play quite an important part in improving your credit score and day to day living, we thought we would share some simple tips to manage credit card spending better.

 

Our Delhi auto loans team has devised a few ways to help everyone manage credit card spending sensibly to maximize their potential while minimizing their cost.

 

This is what they came up with.

 

Challenge: It’s easier to spend on a credit card than with cash

 

Answer: Set a daily and weekly spending limit.

 

We all know how easy it is to spend money using a credit card as we have all done it. Swipe the card or use contactless and you don’t even have to sign anything or enter a PIN. It couldn’t be easier.

 

To overcome this, set a daily spending limit for everyday items like gas and a weekly limit for impulse buys or disposable spending.

 

Challenge: Paying the minimum never clears the card

 

Answer: Pay the minimum and settle the balance each month.

 

Setting up minimum payments is to ensure you never miss one and don’t ding your credit score. They are not for servicing the card.

 

To effectively manage a credit card takes willpower, which we know can be tough. Always pay that minimum payment but also pay off the card in full each month. This keeps interest payments to a minimum and keeps your balances under control.

 

Challenge: Getting a 0% credit card and not accelerating paying off

 

Answer: Don’t remember the PIN or credit card number of the card.

 

We recommend using 0% credit cards regularly for our auto loan customers to transfer balances.

 

We also recommend accelerating payments on that card to lower the balance as much as possible while you’re paying zero interest.

 

Not everyone does that as the interest free period makes it tempting to put everything on hold for a month while you spend. Avoid that at all costs by not memorizing the 0% card number or PIN to make it harder to use it for spending.

 

Challenge: You want to use credit cards to improve your credit score but cannot stop spending

 

Answer: Give the card to someone else to look after.

 

Someone I know did this and it works amazingly well. They used a 0% credit card to transfer all balances, set up automatic payments and then gave the card to me to look after because I’m good with money.

 

If you have someone you trust enough, you could do the same. Use balance transfer to pay off credit card debt as much as possible, make minimum payments, make extra payments as and when you can and give the card to someone so you cannot use it.

 

If willpower fails, this is a useful trick to ensure your finances are always moving in the right direction.

 

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

 

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Categories: Auto Loan

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