Having a credit card can overly tempt you in buying things, especially when being in shopping malls. The illusion of not spending money at all can be illustrated in using cards. The convenience of just giving the card, swiping it, and putting it on credit can be exhilarating – compared to paying the merchandise in pure cash. This can be dangerous to consumers who are overly enthusiastic when it comes to obtaining material things related to their interests.
From my experience, there are two types of buyers: impulse and practical buyers. Impulse buyers are those who, when having seen something that fancies him/her, will immediately buy the merchandise without even thinking of the price tag or the related consequences. Meanwhile, practical buyers will carefully weigh the importance of the merchandise – if it would be necessary to his or her life or if it would fit his or her budget. Most of consumers who get in trouble with debt are mostly the impulse buyers.
But this does not mean practical buyers are exceptions to the rule. There are still practical buyers who can get into trouble as well, depending on circumstances at hand. Anyway, impulse buyers or even normal consumers can find credit cards very addictive and this is with reason: banks designed these cards especially for consumers to use and spend a lot of money with. However, with the current economic condition, overspending is a big no-no. So, how exactly can you limit yourself in buying?
First, be realistic and think about living within your means. Allot a specific budget for your shopping needs and also, set aside some money for savings. If you eye particularly expensive merchandise in a store, don’t buy it if it’s beyond your shopping budget. Think about the merchandise as a reward for yourself when you finally have the money to spend it with.
Second, ask yourself it is necessary. Would your life become better if you have this specific merchandise? Forget about peer pressure and start asking yourself if you are just paying for the brand or for the material of the merchandise you want to buy.
Third, avoid overpriced branded merchandise. There are a lot cheaper materials in the market that you can find as alternatives. Most of the time, you can find high quality and better merchandise in thrifty shops. Remember that it’s not the brand that should matter. Although, buying branded materials once in a while as rewards would be good practice as well.
Frugality and control are two main ways to avoid having credit card debts. By following these steps, you could gradually step away from impulse buying and step away from the illusion the card gives you.