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Financial Advisors Say These Are the Things You Should NOT Buy Using Credit Card

As we enter the year 2018, may we develop financial maturity as handling and budgeting money is becoming increasingly hard. That is why there are many people who resort to instant relief from financial difficulty. We now have credit cards and loans so we can buy the things that seem important, even if we don’t have cash in hand.

There is nothing wrong with credit cards – they’re actually beneficial when put to good use. More often than not, people get carried away and max their credit card out. One of the reasons why people overspend is because of the lack of accountability. Money on the credit card is abstract, we can’t touch nor see it. That’s why we can’t have a clear picture of how much we’re already spending. Just like everything else, getting good at money will need time, so there’s no need to get frustrated! But here is a quick list that will be of help to those who want to know the things that are never to be purchased using a credit card.

Wedding

A national average cost of a wedding is at $35,329

This is all for the ladies out there who want that perfect and dreamy wedding. No matter how much a girl loves to spend on her wedding, it should not be billed using the credit card. It’s easy to get lost and lose count of the things that are being checked out. Wedding items too can be pricey that is why it’s important to have money just for the wedding instead of mixing it up with other expenses. The couple will only realize that after receiving the bill and they might later feel that the pricey table centerpiece doesn’t matter after all. Couples should be able to pay a portion of their wedding in cash, or they’re going to welcome their married life with a piled-up debt.

Coffee runs

There’s nothing more tempting than handing that barista the credit card for a Grande latte, but we must resist temptation. Let’s face it, credit card companies will bill us the amount we used together with its interest. Is paying interest for a cup of coffee really worth it? The answer is no and will forever be no. We shouldn’t let our momentary coffee fix ruin the way we handle our finances.

Restaurant bills

An average American spends $240 monthly on paying foods prepared outside the house

A grown up and mature person will know that food should be part of the monthly budget. This means, if Person A allocates 30% of her salary in food, there really is no point paying it using cards. Using a credit card on a pricey meal will throw off the budget that we have given ourselves. It’s also a common thing where a friend will pay in cash and the person with the credit card will put everything in his/her tab and collect the money. This may sound appealing, but it’s going to be doomsday once the bill comes. Once a budget is set aside for food, then, everything that will involve it should be taken from that allowance.

Shopping for gifts

We just celebrated Christmas and along with it are the gifts we have given to our significant others. There is nothing wrong with giving gifts, but that shouldn’t also be the reason to max out our cards. People might argue with this on the grounds of convenience. It is partially true, using a credit card when gift shopping is way more convenient than bringing bundles of cash. But just like the prior things, credit cards can throw us off our budget. We might overspend thinking that it’s okay since the bills won’t come until the end of the month. But what happens then? Piled up credits and interest. If people want convenience, then they should opt for a debit card instead. It is faster, cashless, and will not let us swipe once it reaches zero.

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