Being financially awesome means taking control of your finances and making spending, saving, and investing habits that will help you reach your future goals — whatever they might be.
Credit cards are a useful financial tool that can support you in this process. They’re a convenient and secure payment method, they give you a bit of breathing room if you need extra time to pay for a major purchase, they can offer valuable rewards benefits, and they can help you build a credit record. But they also involve risks. Credit cards have high interest rates, so your debt can balloon quickly if you’re not paying off your balance in full every month.
Unplanned expenses are a fact of life, though, and even with the best of intentions you might find yourself with a bill that you can’t pay off at the end of the month. If you’re carrying a credit card balance, here are some tips to help you be financially awesome by getting — and keeping — your debt under control.
1. Know where your money is going.
Review your credit card statements and see what kinds of things are making you go over budget. Did you have a big emergency expense? A too-generous Christmas shopping spree or a vacation that cost more than you expected? Or just a gradual accumulation of too many small purchases? Your bank or credit card app can help you keep a close eye on what you’re spending, so you can make sure you stay on budget moving forward.
2. Take another look at the cards in your wallet.
There’s nothing wrong with having a primary credit card and a backup but having multiple cards that you regularly come close to the spending limit on, or that you’re only making the minimum payment on, can be a warning sign. Focus on paying down the card with the highest interest rate first (while still making the minimum payments on the others) and then get rid of ones you don’t need. When deciding which ones to keep, make sure you’re being realistic about the rewards benefits they offer, considering the total cost (annual fees as well as the interest rate).
3. Make a payment plan that works for you.
Take a look at our credit card payoff calculator, which can help you make a plan for bringing the balance down over a period of time that’s right for you. To make progress on wiping out your debt, you’ll need to pay more than just the minimum every month. Make a fixed monthly payment that’s as high as you can afford and think about setting up a direct debit payment for that amount. Don’t deny yourself all treats and rewards but do put most “extra” income (a bonus at work, your tax refund, the money you make from selling something on Facebook Marketplace) toward paying down your debt.
4. Keep your spending in check.
If your credit card debt got out of hand because you weren’t paying attention, you might want to think about making a few changes to your spending habits:
- Try a credit card and digital payment detox for a month or two. For everyday expenses, get cash out of the ATM once a week, and know that when it’s gone, it’s gone.
- Avoid “buy now, pay later” apps — they can tempt you to spend more than you can afford.
- If online shopping is your weakness, make it just a little bit harder by unsubscribing from marketing emails, deleting shopping apps, setting a 24-hour waiting period before you buy something, and deleting stored credit card info to prevent one-click purchases.
- Whether you’re shopping online or in a store, be intentional: make a list and buy only what’s on it, and don’t go over your budget.
We’re here to help you be financially awesome.
While you can’t control everything, you can control how you save and how you plan, which will make navigating any financial challenges a little bit easier. And we are here to help you! Our local bankers are happy to answer your questions and offer advice, tools, and resources to help you reach your goals.
Connect with your local branch and start your savings journey today! Visit our locations page to find the location nearest you.