Balancing Credit Cards

Recording ones checkbook is important, but balancing ones credit is also just as important. Many use their credit cards on a daily basis to make purchases. Credit cards are useful since one can receive points or cash back. Also, one can keep track of their spending when their statement comes at the end of the month. The questions is whether one can pay off the bill completely. A way of doing this is to record how much one spends each time one uses their card. This can be as simple as recording it in ones cell phone or on a notepad. Keeping receipts is a vital part of record keeping too.

Some people have a hard time paying the credit card bill at the end of the month. To help with this, a simple activity might be in tall order. Here it is: when one makes a purchase, double the amount of the purchase and record it on a notepad. It looks like this:

Purchase: Coffee $3

Record: Coffee $6 (the purchase price doubled $3×2=$6)

At the end of the month, one may see that spending is less and paying the credit card bill becomes much easier. Also, if one is in debt, this is a good way of paying it off. Since one is doubling the amount of the purchase, pay this amount. It will pay off the debt faster. This is what it looks like:

Owe: $1000

Purchased this month:  $300 (spent on credit card)

Recorded this month: $600 (purchases doubled or $300×2=$600)

Pay off debt: $600 (amount pay to credit card bill this month)

Owe next month: $400 (amount owed or balance)

This way, one can take note of how much one is spending and pay off bills quicker. Double the cost then write it down on a notepad. This can be a good practice and it only takes a couple seconds to jot down and record how much and what one is spending on. There should be some major categories that will come up. Things like gas, food, and entertainment will become apparent, amongst others. The next month, try cutting back in major categories or find ways of making your dollar stretch. Things like using coupons or buying in bulk will help with this, or do both). This is how ones notepad should look like:

3/1/2017 Coffee $3 x 2 = $6

3/2/2017 Gas $25 x 2 = $50

3/5/2017 Lunch $12 x 2 = $24

etc…

TOTAL $40 x 2 = $80

Pay Credit Card bill: $80

Remember to keep receipts. May the Good Lord bless.

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