If you’re trying to manage your debt, credit card purchases can be a tricky wire to walk across. If you’re close to being clear of debt, charging your credit card can set you back. But if you’ve managed your debt effectively, using your credit card could help keep your credit score on the positive side while being an emergency backup for your budget. For anybody about to make a credit card purchase, there are a number of questions you should ask before you swipe. Here are three things to ask yourself the next time you’re about to charge a credit card.
“Do I need to buy this?”
This may feel like it’s a dumb question, but it’s very important to ask yourself before you decide to buy. If you have time before you buy something, do a little research first just to make sure you’re making a smart buy instead of simply going on impulse. Most of the time, if it’s something that we don’t have the immediate cash for, it’s best to just wait to see if you can live without it and still feel satisfied. Of course, if it’s an emergency (like repairs), then make sure you’ve given yourself enough of a budgeting buffer to pay it off in the long term.
“Is it easier/cheaper/more budget-friendly to pay with cash?”
Depending on where you’re buying, you may run into extra fees by using your credit card. While they may seem small at first, making multiple purchases can add up in the long run. Depending on how you’re budgeting, it might just be better to pay with cash outright for an immediate purchase, and pay a little less on your debt after the purchase. Or, it’s possible that you have the cash in your budget, and it’s better to pay that way to avoid having your purchases tracked by advertisers.
“Can I pay this off at the end of the month?”
Smart credit card users know that they only charge items on their credit cards because they will have the money to pay it off immediately at the end of the month instead of just paying the minimum amount. The kind of interest you have on your credit card may impact whether or not you can pay off a purchase at the end of the month. If it’s a purchase that can wait, and you are trying to control debt, you may be better off saving the money in your budget for a later time, or helping pay off a bigger chunk of debt.
What questions do you ask yourself before you make a credit card purchase? Like us on Facebook and tell us about them!
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