"Thou shall not fear the Credit Card"

Yes! You read it right. This has been my mantra these past few months. Expenses have been piling up and I had to resort to swiping the dreaded card more than i planned to just last month. Honestly, i think my goal of having zero credit card debt seems unreachable this year. I originally planned to eliminate using "plastic", but we had a huge unexpected expense last November, and i needed to take an emergency loan from our cooperative. I had to pay the loan for 3 years, at Php 6000 monthly. This loan made a big dent in our family fund, sending my budget on haywire. I ended up relying on the credit card for daily needs like groceries, school requirements, even gasoline, along with some little indulgences like dining out here and there.


Now i'm challenging my self to use this credit card wisely, and not to swipe mindlessly like in the past years. The hubby and i used to run wild in baby stores, getting little trinkets for the baby. In the end of the month, those little trinkets drew a massive hole in the budget when we pay the credit card bill!

"Thou shall not fear the credit card". Yes, i truly feel that we should not be intimidated when using it. But along this commandment should be, "Thou shall pay in full on or before the due date". If you manage to do this, then that shiny piece of plastic won't be as scary as it seems anymore.

I call it scary because  i personally witnessed the horror story of my brother, who has been haunted by calls from collectors in his house,  even worse, at his work place! The stress caused my brother so many sleepless nights that he had to consult a lawyer so he can finally settle the issue. That is scary stuff for me!

I'd like to think of the plastic as a double edge sword, you  can use it to your advantage or this can also be the cause of your financial downfall. This post even shares the perks of having a credit card. Some are even clever enough to use the credit card as leverage. To me, as long as you pay what you owed on time, then this shiny plastic could be your best friend.

Now i'd like to share a few tricks on how i manage credit card debt.

Pay credit card in full on of before due date. 

• As a strategy, I pay  in two tranches every time my salary comes in, usually 50% on the 5th of the month and 50% on the 20th. This is the first thing i do as soon as my salary is in my account. 

Pay online 

• Most of the credit cards are linked online if you have an existing account with the same bank. In my case, our salary is managed by the same credit card company so i am able to pay my bill with just a few clicks.  I noticed that on a few occasions when i paid online a few days late, the bank did not charge me the penalty.  May be it is because of a delayed posting date when paying online, i'm really not sure. 

Keep track of your balances 

• I keep a list of  my credit card expenses in my wallet. I update this list every time i swipe. This way, i have a clear idea of just how big my bill is as i approach the due date. It's a way to conscientiously use the card.  

Leave credit card at home  

• To distinguish from impulse buying from actual need-based shopping, i only bring it when we have a planned expense.  This way i would not be burdened about paying off a debt from something that i don't really need. 

Use only one credit card

• I have two credit cards, but i only use one. It's so much easier to keep track of expenses when you're expecting only one bill right? Plus, you automatically limit your "would be" expenses. The reality is, your credit limit is not an extension of your budget, it's just ceiling of how much the bank is willing to loan you.  To me, the ideal credit limit should be well within your monthly income or salary, so you won't accumulate a debt that you can't realistically pay.  

I'm not giving up of my plan on eliminating the credit card debt once and for all. I adhere to the belief that cash is king! But as of now i need to be brave and use this credit card to my advantage.

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