How to manage credit card

9 steps on how to manage credit card[even without worry]

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how to manage credit card

When we buy something online or offline, we feel some happiness due to dopamine released by our brains.

Next time happiness again required, but now more dopamine is required than earlier. To release more dopamine, you need to spend more money.

Hence a vicious cycle starts to buy wanted/unwanted through online/offline mode.

Here is now one problem.

The problem is cash available to us is limited, which is not enough to give happiness.

So now what is the solution to take more happiness?

It’s very simple…

Spend that money which you have not earned yet… This means buying things through your credit card.

Because credit card gives 50 days as tax-free days.

So when salary would come & you can easily repay all outstanding amount.

But, here one problem starts to come out and that problem is how to manage credit card spending so that one can enjoy credit card benefits.

A credit card is a good thing when used wisely but it could be a nightmare if credit card spending is not controlled.

The psychology behind entrapping in credit card debt is we are transacting with something intangible, it’s a purely online transaction. We can’t feel it, as feels in cash.

So our brains don’t notice it as seriously. Due to this our credit card spending goes beyond our repaying capacity.

To control this I am here telling 9 ways to manage credit card spending. If you will follow it, then the same credit card will become an asset for you.

  • Define the use of credit cards. (Asset/Liabilities)
  • Define the credit card limit that would be used
  • Maintain your budget sheet
  • Learn to avoid instant gratification (Discipline)
  • Reliable Earning Source.
  • Do Cash Payment
  • Have only one credit card if possible
  • Don’t take add-on card until it is very critical
  • Have a habit of feeling embarrassed while using it

These 9 ways of managing credit cards are so powerful that you will never entrap in credit card debt.

So let’s discuss these ways to manage credit card spending.

Define the use of credit card

If you want to manage your credit card spending, then you should define its usage

The usage of this is self-commitment whether you would use it for making assets or liabilities.

Asset means the expense of something which will bring money into your pockets in the coming days.

Liability means the expense of something which will carry out money from your pockets in the coming days.

If you are using your credit card for making an asset, then it’s better. Because with this asset you will be able to create more money in the coming days.

Suppose you identify some good domain name which has good earning potential if you sell it online.

Now problem is, you don’t have money or have some other commitment but you still want to buy it.

You also know that this identified domain name may not get again.

In this case, if you use your credit card, then it would be a good decision.

Because you use it for making digital assets which can be sold out online and give a good profit.

So, keep the balance between spending on assets & liability things through credit cards.

Define the credit card limit that will be used

The second way to control credit card spending, you should abide by the percentage of credit card limit usage.

If your credit card limit is one lac, and you decided 10% of its limit will be used through it. It means that ten thousand is the limit for you to spend monthly on the credit card.

With this practice whenever you would start to reach the near boundary limit, you can control spending on a credit card immediately.

These will be the mental breaks which you will be applied to manage the credit card spending.

In the event, that you are going beyond the defined limit, your conscience will start to give red signals.

Just try out this and you will see the benefits of it.

Maintain your budget sheet monthly

You should maintain a monthly budget sheet. By doing this you will be in the driver’s seat of good financial life.

Put all your earnings & expenses on that sheet. From there you will get clarity for current as well as next month’s expenses.

With this practice, you will be in a good position to take a decision, on how much to spend on your credit card next month.

Due to some reasons if you are paying minimum dues on a credit card, in that scenario it’s more beneficial to get out of credit card debt.

This practice will help you to manage credit card spending.

But keep in mind, this practice you must do on the date when you receive salary else you would not get enough benefits from this practice.

Learn to avoid instant gratification

This is one of the major reasons why your credit card spending is not controlled. In today’s online world, everything is on the tips of your fingers.

Whether you are surfing on Amazon or Flipkart, any new thing is just a few clicks away from you.

But remember, you are spending that money which still has not been earned.

So be careful.

Instant gratification is a habit, as much you start to buy online, it urges you to buy more.

Put some barriers to using a credit card. It’s all about your discipline. If you have discipline in your life, then you can manage credit card spending in your life.

Reliable Earning Source

This is another factor which can manage credit card spending. Without any reliable earning source, how can you spend on a credit card?

You are spending money on a credit card today because you know, you have a reliable earning source and can repay outstanding amounts on time.

If your earnings are not reliable then you can’t spend more on your credit card. If you do so, it may entrap you into debt.

So, if you want to get a credit card then make sure you have a reliable earning source with which you can pay a credit card outstanding amount.

Do Cash Payment

If you feel have not enough self-discipline to manage your spending, then do it through cash instead credit card.

The psychology behind paying in cash is, that we grew up with hard cash, not with online transactions.

So, our brain is psychologically not able to alarm us about spending happening through online transactions.

That is the basic reason why banks offer us credit cards.

When you pay through cash, your brain starts to send a message like…it’s your hard-earned income…don’t waste it etc.

Because now brain notices hard cash in our hands. So you will end up with little spending.

Now, with this habit, you can manage credit card spending to a large extent.

Only One Credit Card is Enough

Some people just take another credit card for the sake of rewards.

This is a bad practice.

Managing too many credit cards is also troublesome.

If you know your spending habits are not so good, then having too many cards could lead to financial disaster.

The second card should allow only when you are in dire need or solving some specific purpose which could not be solved with the existing card.

Some people have the first card for grocery payments, the second card for Amazon, the third card for Flipkart, the fourth card for fuel filling, the fifth card for hotel bookings etc.

They give only one logic behind it, reward points out of it receives.

The point is if your spending habits are poor, and you forget to do repayment of any card on time then a heavy penalty would be taken by banks which used to they want.

With one card it’s very unlikely you forget to repay the outstanding amount on time. So managing credit card spending, have only one credit card.

Don’t take add-on credit cards until it is very critical

Don’t take an add-on credit card until it is very critical. In an add-on credit card, you remain the primary holder and to whom it is issued will be the secondary holder.

The add-on card can be issued to your children, spouse even your parents.

This option should opt only when it’s a very critical situation because all payments you have to repay of add-on cards.

You know your spending behaviour but can’t guarantee others how they will spend.

By avoiding the additional add-on credit cards you can manage credit card spending in a better way.

Have a habit of feeling some embarrassment while using it

Some people feel very proud while using their credit cards.

They show off like they possess a gem.

But the reality is they are spending that money which still has to earn.

Moreover, they may be spending on wants instead needs.

So how can they feel proud of spending through credit cards?

So with such a feeling, you can manage your credit card spending to a large extent if your spending habits are poor.

This is some tough habit to adopt


We should keep one fundamental thing in our minds whatever we spend on a credit card is the money we will earn in the coming days.

It means we are trading off today’s spend with future income.

So, the balance must be between today’s spend and future income for a healthy life.

If your future income is reliable then you have somewhat flexibility but if you do not have such flexibility, then use it very conservatively.

Once you are entrapped in credit card debt, then it would be a very difficult path to come out and in this, not only you but your family also would suffer along with.

These small-small habits are so powerful that they can manage all your credit card spending skillfully in my opinion.

But what do you think about it?

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