Small purchases and your psyche

Whipping out the credit card for a small purchase doesn’t seem like a very big hit. I know that when I use a credit card for a large purchase, all I think about is how quickly I can pay it off. I worry about the big credit card purchase.

The small credit card purchase? Not so much.

Small amounts of between $10 and $75 don’t seem like such a big deal. You just put it on the card and forget about it. After all, it’s such a small amount. It’ll be cake to pay it back.

Unfortunately, these small purchases on credit cards tend to add up. Since we don’t really think about the small purchases, many of us don’t keep a running total of what we’ve put on these credit cards. So when the statement arrives, it can be a real shocker.

I remedy this problem by using personal finance software to track even the smallest of my purchases made on credit cards. That way, I can keep tabs on what I am spending throughout the month, and cut back where needed.

A friend of mine actually deducts what she spends on her credit card from her checking account. That way she can ensure that she does not overrun the money she actually has. Then she writes a check to cover the entire balance. She gets the reward points without paying the credit card interest.

Do you have any tricks you use to avoid over-spending with your credit cards?

image credit: sxc.hu

Post from: EveryJoe

Credit Cards: Watch Out For The Small Purchases