Do you believe that plastic is fantastic? You never think twice before picking up stuff from shop shelves. “Just charge it to my credit card” is your favourite refrain. You follow the ‘Buy now, pay later’ system. You believe that your credit card provides instant gratification and gives you the freedom to buy whenever you like without worrying about the need to have a surplus of cash. But does this mean that you end up buying more than you need, don’t have the money to pay your credit card statement, end up paying the minimum balance each month and are thus trapped in the vicious cycle of debt and repayment?
If this is you, then you sure are addicted to plastic credit cards. Still not convinced, then answer the following questions and find out:
- Do you own more than three credit cards?
- Do you know how much money you spend through your cards monthly?
- Do you buy things on your card that you actually do not need?
- Do you keep cash in limited amounts because you own a card?
- Do you buy without checking the price tag or check the price before buying?
If you answer YES to even two questions, then you are a confirmed plastic addict!
If you want to get rid of this addiction and save yourself from bankruptcy, here is what you can do:
- Pay your bills: Settle all your old payments and get all your cards cancelled except one.
- Compile and record: On the 29th of each month compile all your card payment slips and put them in a pocket diary.
- Start banking: Start the practice of withdrawing cash from the bank.
- Control spending: Lastly every time you have an urge to spend on the card count till 10 and then make the purchase. This will save you from impulsive buying. Learn to manage your spending and let plastic be a boon for you, not bane.