How To Cut Down On Your Credit Card Spending

Actions you can take to reduce spending on your credit cards

If you find that your credit card spending has gotten completely out of control then you need know that there is good news. There are ways to cut down on your spending without having to get rid of your card completely.

Cut down on credit card spending

Cut down your interest repayments

The St.George Vertigo MasterCard features a special interest rate on purchases and balance transfers. It is a highly competitive credit card offer, that will help you avoid paying high interest credit card repayments.

• $55 annual fee
• 13.24% p.a. on purchases
• 0.99% p.a. for 12 months on balance transfers
• Cash Advance Rate of 21.49% p.a.
• 55 days interest free
• Minimum Income Requirement of $15,000 p.a.

Read the St George Vertigo terms and conditions.

There are ways that you can cut down on your credit card spending, and here are four of our top tips for getting it done.

1. Don’t use your credit cards for everyday necessities

Dun and Bradstreet has done a recent survey that shows that 4/10 Australians use their credit cards for everyday purchases such as petrol and groceries. They are using their cards in order to stay afloat, and this can lead to serious problems.

Your monthly payments need to be analyzed and organized into priority and non-priority categories. You will have to make a list of all of your outstanding debts, your utility bills, mortgage or rent, food and then a list of all of your other miscellaneous purchases. These payments need to be prioritized and then you have to make sure that there is enough money left at the end of every month to pay off your credit card bills. You should also take a good hard look at whether you really need the luxuries you are planning to get like a new mobile phone, a membership at the gym or a second vehicle.

2. Don’t use your credit card to make cash advances

Most credit cards give you the option of making a cash advance at your local ATM. You can use your card to make cash withdrawals in order to pay for your purchases. This can cost you a lot of extra money in fees and charges because they are added to your credit card statement at the end of the month. If you can’t make a full payment for your cash advances when the credit card bill comes in, you will be stuck paying a very high interest rate on the balance.

It is a much better idea to use your debit card for cash withdrawals. The fees associated with debit cards for withdrawing money from an ATM are usually very minimal.

3. Discipline yourself

You can cut down on your credit card spending by simply watching your credit card limit and never going over it. One good trick you can do to further discipline yourself is to ask your credit card issuer to reduce your credit limit on the card. This will reduce the temptation to spend.

At the same time, keep in mind that you should be spending according to what your bank balance looks like, not what an independent third-party like a credit card provider says you’re allowed to spend.

4. Don’t pay extra interest

It is easy to fall into a trap where the payments on your card are about the same amount as the interest being added per month. This makes it very difficult to actually pay off the debt.

There is nothing stopping you from looking around for a new card that gives a better interest rate. If you can find a card, such as a balance transfer card that offers a significantly lower rate of interest, then your payments will actually go towards paying off your debt.

Using these four tips mentioned above will greatly reduce your credit card spending and you will be on the road to getting your credit card finances straightened out. Use them wisely and start making good card choices.

Check out today's featured offers:

Westpac Low Rate	Citibank Clear Platinum	Qantas AMEX Discovery	ANZ Platinum
0% p.a. for 6 months on purchases & balance transfers	2.9% p.a. for 12 months on balance transfers	$0 annual fee Up to 10,000 Bonus QFF Points	0% p.a. for 6 months on purchases & balance transfers

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Popular Credit Card Offers

			Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
	Westpac Low Rate Card - 0% Offer	A credit card with a low rate offer on both balance transfers and purchases, plus a low annual fee.	0% for 6 months (reverts to 13.49% )	0% for 6 months	$45	21.49%
	Citibank Clear Platinum Card	Competitive interest rate on purchases and balance transfers offer.	11.99%	2.9% for 12 months	$99	21.74%
	St George Vertigo	Take advantage of this great offer from St.George with a low rate on purchases and a low balance transfer offer.	13.24%	0.99% for 12 months	$55	21.49%
	ANZ Platinum Credit Card	An introductory interest rate offer on balance transfers and purchases, plus a $0 first year annual fee.	0% for 6 months (reverts to 19.24% )	0% for 6 months	$0 annual fee for the first year( $87 thereafter)	20.99%