Money Saving Tip #1 – Don’t Slice up Those Credit Cards

Small Stocks is starting a compendium of money saving tips that can really help you save dollars in your weekly budget no matter where you are based in the world. This series is going to continue until we have exhausted almost every technique available : ) – which basically means it’s not going to stop.

Don’t Slice up Those Credit Cards

Sure, it’s a sounds like a good strategy to adopt – but these days, you can’t live without a credit card to pay bills, access Internet services and transact for things quickly and easily without having to travel. A simple way around destroying your credit cards is to utilize direct account to account crediting and reduce your overall credit limit.

Most people always spend above their means when they have the ability to do so.

Don’t. My grandfather says to me “Don’t spend money you don’t own” and while this is great advice, it’s just not possible in our world in this day and age. Instead, I reduce my credit limits to a manageable level and set up direct account to account transfers which automatically suck money from one of my accounts each fortnight to pay off the debt. It’s really easy to setup through direct transfer between accounts through either your Online Banking, or via your local Bank Branch and what’s better – it’s a strategy that adopts the ‘out of sight, out of mind’ approach – meaning if you don’t see the money in your account, you can’t spend it. 

Don’t make life harder for yourself by having a high credit card limit that you are only going to accrue bank fee’s and charges, and most importantly – interest. Lower credit limits, means that even if you spend up big – you are “forcing” yourself to stop spending because you reach your limit. The attractiveness of high credit is great, and if you can control your spending then this tip won’t really apply – but while having high credit limits attracts good credit ratings as a positive, if you can’t pay back all the debt you have accured – your ratings going to be shot anyway!