fbpx
Call Autumn: 210.765.1111 or Frank: 830.312.9332

A Simple Way to Stop Using Your Credit Card So Much

By in Articles with 0 Comments

If youve got a problem with credit card debt, there might be a simple solution thats already sitting in your wallet or purse ” a $20 bill.

Having cash in your pocket may seem counterintuitive. If youve heard the phrase burning a hole in my pocket, then you know how enticing it can be to spend money youre carrying around.

But having cash on hand can cause you to spend less money than you would with a credit card ” at least for small purchases ” researchers have found.

A study by the Urban Institute found that using cash when a purchase is under $20 left the consumer with $104 less in revolving debt, on average. That dropped their credit card balances 2 percent below their baseline average.

For young people, the $20 cash rule led to more savings. People under 40 who were reminded “don’t swipe the small stuff” and to use cash on purchases for less than $20 had $173 less in revolving debt.

Credit keeps charging
The group also sent reminders to credit union members that credit keeps charging and that using a credit card adds about 20 percent to the total cost of something.

People who received that reminder didn’t significantly change the amount of their credit card debt, the survey found, but younger people did charge less. People under 40 who received the reminder about the cost going up by 20 percent with a credit card had $160 less in credit card debt.

A swipeis easy
Swiping a credit card can seem a lot easier and cheaper than using cash because you’re not parting with anything tangible. Seeing a $20 bill leave your wallet feels more like spending money than using a plastic card to buy something. After all, a $6 drink doesn’t look too bad when compared to a $5,000 spending limit on your credit card.

Having cash on hand helps you refrain from making small impulse purchases, which quickly add up. Check your credit card statement ” seeing is believing.

I hope you found this information helpful. Please contact me for all your real estate needs today!

Published with permission from RISMedia.

Share This
About The Author
Frank Bisono

Frank Bisono is a top-producing, award-winning real estate agent with expertise in residential, luxury, lakefront, farm & ranch, airpark (hangar home) properties and commercial real estate. As a Real Estate Negotiation Expert (RENE) and a Texas Accredited Commercial Specialist (TACS), Frank has a proven track record of success in the industry. With experience as a real estate investor, he understands the unique needs of his clients and is committed to helping them achieve their real estate goals. As a US Navy and US Army veteran, Frank embodies the values of integrity, dedication, and hard work. He works with clients from all walks of life, providing them with personalized service and a wealth of knowledge about the Texas real estate market. With offices in New Braunfels, San Antonio, Austin, Houston, and the Coastal Bend Markets, Frank has a deep understanding of local trends and can provide valuable insights to his clients. Frank's commitment to excellence has earned him numerous awards and accolades throughout his career, including recognition as a top producer in his field. His passion for real estate and his commitment to his clients make him a trusted advisor and a valuable asset to anyone looking to buy or sell a property in Texas.

Leave a Reply

Your email address will not be published. Required fields are marked *