Wednesday, 19 July 2017

Credit Card Debt - Don't let it Destroy your Budget

You see the envelope and open it with dread.

It's another credit card bill. 

If you're trying to get back on track financially but are still running into issues with overspending due to the plastic in your wallet,  it's time to make a big change.

Used with the kind permission of

As I see it, you have two options: don’t carry your credit card or cut it up.

I believe that a credit card is an important thing to have in your life. In a world that is going moneyless sometimes you run into roadblocks without it. Some places either don’t take cash (for example, if you’re buying online) or, in certain circumstances, it’s just safer and/or easier to carry a credit card (like on an international trip).

Building and keeping a credit score is also extremely important nowadays. Small purchases that are paid off quickly can do a lot for a person's long term credit. That said, when all else fails, and you no longer have the ability to keep up with the bills, remove the temptation. Put the cards away for a while. Lock them in a cupboard or give to someone for safe-keeping; anything to get them out of sight. It is amazing how much this will help.

If that doesn’t work, and the debts keep increasing, it may be time to say goodbye to plastic altogether. If it’s really bad, it may be time to remove the temptation completely and cancel some cards, but use that as a last resort.

Shared with kind permission from

Try not carrying any cards for a month. Work on a cash-only system with a weekly budget. When we’re using cards, money is abstract. By using actual cash system and setting a fixed budget with no backup (meaning, your cards) it is amazing how quickly we start to see the value of a dollar. In turn, we become more conscious of our spending habits.

I used to overspend, (which led me to this blogging venture, actually). I found a couple months of working on a cash-only budget straightened out my relationship with money. I use cards again, but I am conscious of everything that goes into and out of my account.

Credit card debt is some of the worst due to the massive interest rates and you can easily dig a hole to the point that it's nearly impossible to get out.

Also, think of it like this; is that nice thing you *needed* to have worth missing a rent or mortgage payment?

I didn't think so.

Let me know what you do to keep your spending in check in the comments below. I would love to hear from you.


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  1. Maybe not the best way to go about things, but this is why I always put all of my change in a jar. Any of the coins I get during the day are taken out of my wallet and put in a jar by my bed. By the end of the year there's always at least $500 dollars in there (joys of using the cash envelope system) that gets put into a separate savings account. So there's always a cushion for unexpected things.

    1. That is a good idea. I am a fan of any form of saving. If it works for you, keep doing it. That $500 can be a godsend at the right moment. Thanks for sharing Alyssa!