Using a credit card has become commonplace today. Not only for career women but also for housewives. Many assume that credit cards will make expenses out of control and can backfire. Actually credit cards can help financial arrangements for housewives, provided Moms use them wisely. There are many benefits that can be utilized from a credit card, but there are also things that must be avoided. Therefore Moms needs to learn careful ways to use a credit card.
Here are some ways you can help Moms to be wise in using credit cards:
Credit Card Not a Source of Income
Sometimes credit card owners feel they have a new ‘income’ by having a credit card. Housewives who usually do not have income are very happy when they have the opportunity to spend money with a credit card. Sometimes having a credit card feels like having extra money. Embed in your mindset that credit cards are not a source of income. Even credit cards are actually debt. Credit cards should function to replace the money you have. If possible, credit cards should not be used as an emergency fund. Emergency funds are a mandatory budget that must always be owned. If indeed there is no other choice then use a credit card. Make credit cards the most recent choice for transactions. Unless there are certain benefits such as discounts or promotions.
Look for Credit Cards that Fit Your Needs
Credit cards generally offer certain benefits to users. For example discounts at certain outlets, promos buy 1 get 1 free, holidays, etc. Moms should look for credit cards whose benefits can benefit you and your family. A credit card may have many offers, but if the offer does not suit your needs, the possibility of an offer becomes useless.
Another possibility is that you will spend money on things that are not really needed. Housewives generally really like any offer that smells of discounts or promotions. If there is a promotion that is not utilized, the housewife will say “too bad”. Finally you will make unnecessary expenses just because you want to take advantage of the promotions offered. Do not let the expenditure of Moms become out of control due to the euphoria of the promotion. Discounts and promotions should benefit you, not the other way around making expenses out of control.
Use a Credit Card for Non-Desire Needs
If you really need to use a credit card, you should use it for needs instead of wants. Someone will be able to fulfill their life needs, but if they want to fulfill their wishes there will be no end. If Moms uses a credit card to fulfill their wishes, usually the expenditure will be far beyond the limit. If Moms want to buy something to fulfill their wishes, you should use cash if it already exists. That way you know how much money can actually be spent.
Don’t shop beyond the ability
Sometimes a credit card feels like invisible money, even though a credit card is an invisible debt. Know that credit cards only replace the money you have temporarily. Not that the amount of money is increasing. If Moms have to use a credit card for shopping, rest assured that you can afford to pay it in the following month. Don’t spend more than your ability to pay credit card bills the following month.
Pay Full Bill
Pay off your credit card bills every month in full. Paying the minimum bill is a fatal and very detrimental error. You are not aware that the interest to be added from the rest of the bill is large. If the bills continue to be stacked, the amount will get bigger and eventually will not pay off again. As much as possible, always pay full credit card bills to avoid the large interest.
Check Monthly Billing
Always check your credit card monthly bill. It is important to evaluate where you spend money every month. That way it will be easier to control expenses. Sometimes Moms may not realize that they have been issued for things that are not really needed. After seeing your credit card bill, identify your mistakes and avoid the same mistakes the following month.
In addition to controlling expenses, checking credit card bills every month is also important to protect you from fraud. Many irresponsible people can steal credit card data and use it on your behalf. If there is such fraud, you can immediately report it to the bank for further action. Without checking monthly bills, you might not know of such frauds and instead pay all bills that you don’t use.
Wise in Using a Credit Card
Housewives are usually the main key in managing family finances. One of the tools that can help is a credit card. Use a credit card according to your needs and portions wisely. Remember credit cards should ease your burden, not add to the financial problems of the household.