Thread: Credit Cards Issue

If you find yourself using the credit cards each month to cover the last week or two or to hold you over to payday, you may be wondering how you can stop using credit cards. It is important to stop relying on your credit cards because it adds to your debt each month and it prevents you from building wealth. Credit cards cost you enormously in interest payments, and it is important to act quickly to stop the cycle.

Difficulty: Easy
Time Required: A few months

Here's How:
1. First you need to sit down and look at your income and your expenses.
Track your spending habits so that you can see where you are spending your money. This is important so that you can change the habits that are leading you to use your credit cards each month. This will help you to really begin to make changes.

2. Second you need to sit down and write down a budget.
You need to set up a reasonable limit for all of your expenses. The key to making this budget work is to know where every dollar is going to go. Your income and expenses should equal the same amount. (Money you put into savings would be considered an expense in your budget.)

3. Third you need to start following your budget.
You may need to switch to cash to prevent yourself from overspending at the beginning of the month. You need to track your spending, so that you know how much you have left over in each category after you spend your money.

4. Fourth you need to stop carrying the cards with you.
You may choose to carry one care for emergencies (like paying the tow truck when your car breaks down), but only if you will not use it for other expenses. Simply not having the option to use your cards will really help you to stop using them.

5. Fifth, plan your month carefully, and keep your priorities straight. Remember that food, shelter and power come before your new shoes, iPhone or game system. If you do not stick to your budget in all categories you may run out of money for the necessities.

6. Sixth save money for an emergency fund, so that you do not need to use your credit cards during an emergency.
Until you are out of debt an emergency fund of about $1000.00 should cover most emergencies, and after you are out of debt, an emergency fund of three to six months’ expenses should be enough.

7. Seventh, make a plan to get out of debt.
Getting out of debt will free up money so that you can cover your needs, and have money leftover for your wants. This is a huge step in getting ahead financially, and you will be amazed at the freedom it affords you.

Tips:
1. Make your credit cards hard to access. Freezing them in a big block of ice is really not that bad of an idea, but you may also want to delete the numbers from your online stores memories, which will make it harder to shop there as well.

2. Tracking your expenses and following your budget is the best way to stop yourself from running out of money each month. Although these activities can be tedious and time consuming they are essential to help you gain control of your finances.
What You Need:
• List of income and expenses
• Budget
• Willpower

8.Cancel your credit card,use debit card instead :love:

9. Stop using cards for payment. Make all payment online if available. Pay cash for other expenses. Everybody can survive without card as long as u don't outstationed and stay in hotels.

10. Leave them at home.
Take your credit cards out of your wallet before you go shopping. If you get the urge to buy something, you'll either have to use cash or come back for the item once you have your credit card.

Originally Posted by dzila_87

8.Cancel your credit card,use debit card instead

1. pump fuel, charged RM200, wait 3 days, refund... sorry bank, you shouldn't hold my money.... especially when I'm only refuelling RM10...
2. go to store, when ask "can use debit card?" answer received "no" despite the fact they accept credit cards and both Mastercard and Visa says their debit is acceptable wherever their logo is or they answer "yes" but later on payment ask for pin number... debit card got pin number??? isn't that Bankcard payment via MEPS??? lucky they serve the same purpose... phew... the point is, the seller themselves didn't aware of the term "Debit Card"

Originally Posted by abg_rider

9. Stop using cards for payment. Make all payment online if available. Pay cash for other expenses. Everybody can survive without card as long as u don't outstationed and stay in hotels.

go buy a laptop, I need to be very very very careful... with me I got RM2000 in cash... :|

online payment??? not careful later got scam, charged twice etc etc.... the risk is just as much as the usage of credit cards... what's worse, you make payment online using your credit cards... =.="

Originally Posted by share4u11

10. Leave them at home.
Take your credit cards out of your wallet before you go shopping. If you get the urge to buy something, you'll either have to use cash or come back for the item once you have your credit card.

consider this situation...

driving leisurely, whistling in the middle of the night, maybe just arrive from hometown or yamcha with some friends... suddenly the low fuel indicator lights up... ouh, I got to refuel... there's the pump station... stop by, take out wallet.... shoot, I forgot my card... hmmm... let's pay by cash then... shoot again!!! I forgot I finished my money just now for dinner (yes, it did happen to me)... okay, lucky I got my atm card... let's go in withdraw some money... shooooooooootttttttttttt.... the station got no ATM (or perhaps, the station is already closed in the middle of the night with one guy stay at the counter...) =.="

so, in conclusion... 3 additional tips that can't be followed...

^ I LOL-ed~ the best step is, spend wisely, be it with cash or credit card. if not, use cash also can become broke. hahahah

With 'how to use yr cc wisely' threads aside, I heard that we can now only apply 2 credit cards if our income is 3k and below? Is that a new move to reduce bankruptcy or smth? What if I need 3 credit cards for personal reasons??

Yes its true, people now limit their cards and spending. But you might wanna consider this card just for the freebies. Citibank now offering free GPS and Rm138 rebate if you get their card. Sounds like a plan eh? But don't take my words for it. Check it out yourself.
Citibank Credit Cards Promotion

aaaiikkksss been away for 2 weeks now this happen..if gone for 1 year then whole world gone lol hehehe....think the bankruptcy is a bit too much la...if control properly can help to reduce expenses lol....