It’s not always easy to
watch what you spend when you like to shop a lot and the things you buy happen
to be expensive. Then there is the possibility of running low on cash in a time
when you really need cash. Both situations could get you into financial
problems. And a credit card, depending on how well you use it, could get you
deeper in debt or be your way out.
It’s Not Free Money
Cash back credit cards
may add to your dilemma because these offers allow you to get what may seem
like “free money.” For instance, when you buy items at a retail store, you can
ask for an additional amount — in cash — to be charged to your credit card.
Other cash-back programs from various credit card companies may offer you a
small percentage of what you spend. You have the option to get the small
percentage in cash (i.e., you could get 5 percent back on groceries) or as
points for your credit card (i.e. get enough points and you may get a free trip
from the credit company).
To avoid overspending on
your credit card by frequently getting cash, plan out your purchases. Maybe you
forgot to bring money and you have to pay for taxi fare. You can duck into a
gas station, charge a few items, and then ask for cash. Consider using the
cash-back option only in emergencies or when you only, truly need cash.
Take Control of Your Finances
Other than being smart
about when to get the cash-back offer, the best way to control your spending is
to choose your credit card well. There are many credit cards that offer
cash-back programs; compare interest rates, annual fees, rules about
expirations, redemptions, and forfeitures, and policies. In other words, read
the fine print so that you know what you’re in for when you use the cash-back offer.
In theory, credit cards
are meant to help you out. For one thing, you don’t have to bring a thick wad
of cash wherever you go. For another, you can save what little cash you have on
you and use your credit card to get what you need. But sometimes the temptation
to buy things or acquire services can be so great because using your credit
card will feel like you’re getting stuff for free, and you forget that you will
be billed for the things you charged.
So try to control your
spending. Splurge less, plan more. And be smart about cash-back offers.
Do you have have any questions or suggestions? Write in comment section.
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