Top 3 Ways to Handle Impulse Purchases

Daily Steps to Avoid Credit Card Debt

Aug 1, 2009 Renee Haswell

There are some daily purchases that make life comfortable. Using your credit card for convenience purchases can quickly add to your growing amount of debt.

There are many purchases that are made each day that are unnecessary. These daily purchases may not have been purchased, if cash was paid. Working parents or professionals may find themselves comfortably charging meals, entertainment, or extra clothing items. Here are three tips on ways to avoid credit card debt.

Avoid Credit Card Debt

Take steps each month to organize each credit card statements. Look over each statement to view personal purchasing habits. Highlight frequent purchases that are made. There may be items charged that could have been paid completely in cash. Examples may be daily coffee, cigarettes, sodas, restaurant meals, and unplanned shopping trips.

Grocery store purchases paid with a credit card may be slightly higher than initially budgeted for. Keep written records on how much of the outstanding debt was paid each month. Make an effort to pay the balance in full each month. In the event there is a large balance, think about how each unnecessary purchase is adding to the growing interest each month.

Paying Cash

Identify at least two types of purchases on the credit card statements to pay cash for. Visit the ATM machine and take out enough cash for all weekly expenses. Paying cash for weekly shopping trips can help cut down on impulse purchases. Create a written budget for food, clothing, and gas. Stick to the budget by not bringing credit cards to lean on. Use a calculator to keep a running total while shopping.

Department Store Credit Cards

Retailers are depending on consumers to buy more when using department store credit cards. Most department stores offer special discounts for using the department store credit card. This discount usually can be applied on top of store sales, clearance prices, and additional coupons.

If the complete balance is not paid in full each month, there were no actual savings. The interest paid on the purchase far exceeds the in store discount received for using the department store credit cards.

There are certain months of the year when retailers drastically reduce the price of clothing, furniture, and housewares. Plan to shop with department store credit cards at this time. Set a predetermined budget and bring a list of which items will be purchased. Immediately after receiving additional discounts for using the department store credit cards, make a payment. This payment can be made before leaving the store. When shopping online immediately send a payment for the amount charged through online banking or mail off a paper check.

Avoiding credit card debt does require some planning. Choosing to use cash instead of credit cards is important. Keeping the outstanding balances on credit cards and installment loans low should be a priority. Use these tips to help avoid credit card debt.

The copyright of the article Top 3 Ways to Handle Impulse Purchases in Personal Budgeting/Finance is owned by Renee Haswell. Permission to republish Top 3 Ways to Handle Impulse Purchases in print or online must be granted by the author in writing.

Avoid Credit Card Debt