You likely know that using credit cards can be problematic for those who have money troubles and who want to spend at little as possible on waste like credit card interest. However, you also know that living in the real world will often mean using credit cards, even when you are trying to live as frugally as possible. Fortunately, there are some things you can do that will help you to live better and on less, even when you are using credit cards.
Why Might You Need Credit Cards
Even though you might not want to admit it, credit cards are very handy and you might need to have one or two. They will not only help you to maintain a good credit score, when handled properly, but they can make it easier to rent vehicles, hotel rooms, and more. If you are struggling to pay your debts, you may consider getting not just any credit card but a balance transfer one. The balance transfer credit card is a card that allows you to pay off the balance on existing credit cards or loan by transferring them to another credit card account. Balance transfer cards can help you catch up on your existing debts. If you are still in two minds about your credit card, check out Money Under 30's best balance transfer cards. But remember, any credit card can also be dangerous when misused.
Understand the Dangers of Interest
Some people spend more on credit than they realize. They will also spend on items that they do not really need, not truly understanding just what a problem the interest is going to become. Interest is money that is essentially wasted, and depending on the card you have, you might be paying a lot of money in interest. This is the opposite of living frugally.
Pay With Cash Whenever Possible
To help reduce the problems that are presented through interest, you can always try to pay with cash whenever you can. If you do not have the cash available for a purchase, then it likely means that you don’t really need that purchase. There are, of course, some exceptions to this rule, such as when you are trying to deal with an emergency.
Reduce Your Spending
As hinted at above, you can live more frugally by reducing your spending. You might find that you do not need to have certain items that you are spending on currently. You might have some subscriptions that you could cancel, or you could reduce the money you spend on eating out, for example.
Choose a Good Card
Always make sure that you are using a quality card with the lowest rates possible if you have to use a card. If you are looking for a good way to consolidate your cards and your debt, you might want to consider balance transfer cards, as these can be quite helpful. Check to see if there are any that appeal to you and that you believe you will qualify for.
It is possible to live frugally while still having credit cards. The trick is to have credit cards that have a good interest rate and trying to keep those balances as low as possible. With some discipline and the advice here, it can work for you.
