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#1 - don't use a bunch of credit cards, pay them off ASAP as credit card balance is a weight that grows as it drags you down
#2 - if you choose to use credit for spending due to card benefits, pay them off monthly and don't carry any balance if possible
#3 - use a calendar app with bill due date reminders to keep up with them
Luckily I have zero debt on any of them and auto pay the balance. Just have trouble budgeting with multiple streams and it results in zero cash after income then bills. I know I have room to save but struggle recently
Good rules to follow! Thanks
Is the concern managing too many cards or overspending because it’s easy to use a credit card?
I feel it’s a mix of both. I autopay in full each month but recently my income after paying last months CC bills is very little. I feel it would be easier to manage with only one card to look at.
You can do this by either an excel sheet of transactions or by just going off the total payment(s).
simple. you must spend on the cards like its cash. no spending more than you have. call them and lower the spending limit. No more than 1k. You will need to pay the balance to free up credit.
Take a look at YNAB. It was absolutely eye opening and a lifesaver.
It looks awesome but honestly it was/is too hard for me. I used to just do a spreadsheet before my family got bigger.
Seems like the cards aren't the problem and spending is. Not using cash, you don't actually see the money leaving your wallet/purse. You don't see your cash reserves dwindle. My suggestion is figure out your weekly income and keep a hand written list in a small notebook. Each time you spend deduct the amount. Better yet write down what the expense was. If you don't want to carry a notebook, save all receipts and do it when you get home. At the end of the week take a serious look at what you bought and make a list of frivolous expenses and add them up to see what you could have saved by using a little restraint. Did you really need that $5 cup of coffee? Or that $3.50 soda drink at lunch instead of water? Could you have saved $10 by picking up something at the store instead of having it delivered? Small numbers add up to big numbers when we don't pay attention. Having these things written down in front of us has an impact. Of course some expenses aren't optional but some can be mitigated. Take pride in each little gain, give yourself a pat on the back/endorphin boost each time. Seriously, that helps me accomplish goals. Good luck, I hope you find success
If there is no fee then sometimes it does hurt your credit to cancel because one factor is average age of total accounts. If you're just worried you'll use them cause they are convenient you could literally shred the cards but keep the accounts open.
If credit score is a concern, you could also downgrade to a card without an annual fee.
Thanks for your advice
I'm not a budget person either. I just look at what I have, and decide if I can afford something.
My advice:
There's no good reason to have more than one "daily driver" card.
Get rid of the specific store cards. Sam's and Amazon.
Choose between the Amex and PNC unlimited, which one will be your daily card. Get rid of the other.
The old PNC you just use for utilities, might be worth keeping for your credit rating. But only for quarterly, or better 6 month bills.
This way you can more easily see your monthly spending all in one place. Then make your choices.
Thanks for your advice! :) I think I want to get rid of the Amex because of the fee.
I agree with you but what about the loss in discount at those stores? Or is that how they’re “getting me”? Making me feel the 5% is worth the frequent use of that card in addition to others?
5% is almost nothing. It's less than sales tax in most places.
How much is the extra mental work and stress worth to you?
For me it's an easy sacrifice. You could minimize it, by going with some card that gives 1-2% on everything.
Thank you! I had never considered it this way. It’s a lot of stress for only 3% extra back. That is not worth it at all! I think the PNC already gives 2ish%.
What does "free" reference in this context?
I assume no yearly fee to use the card.
Yes, thank you
The tools (credit cards) won't fix a spending issue.
Have you tried being extremely intentional about the money you spend? Have you applied for higher paid jobs? Is there a stress related or emotional tie to the spending? Some spend money to "make up" for something.
Is there any reason to use the Sam's card at Sam's - like does it get you a discount or is it the only card you can use at Sam's? If that's the case, I would keep that one and the Amazon one that gets you a discount and I would stick the rest in a drawer and only use them in case of emergency.
Yes I think it’s also 5% at Sam’s.
Thanks for your advice! Would you cancel or keep the Amex? It does have benefits, especially in purchase protection and good customer service, but it’s not free. I do make that fee back though, but I could be using that $95 elsewhere.
Have you ever used the purchase protection from Amex specifically? Cause a lot of places tend to have decent return policies. Do you often use the Amex in a situation where you would actually need their specific protections? If you’re worried about fraud, a lot of cards have good protection from fraudulent charges. I’ve had three different instances of fraudulent charges on various cards and have always been able to get the card company to handle it, and it has always turned out ok for me. Obviously, that can’t always be the case, but in my experience, it is not necessary to pay for a card for the added protections.
Personally, I have three cards. One stays on the drawer and is from a specific company and only used for a monthly charge from that company to get a discount and is setup for auto pay. I carry two cards with one being my main and the second is there in case there are issues with my main for some reason.
Have you ever used the purchase protection from Amex specifically? Cause a lot of places tend to have decent return policies. Do you often use the Amex in a situation where you would actually need their specific protections? If you’re worried about fraud, a lot of cards have good protection from fraudulent charges. I’ve had three different instances of fraudulent charges on various cards and have always been able to get the card company to handle it, and it has always turned out ok for me. Obviously, that can’t always be the case, but in my experience, it is not necessary to pay for a card for the added protections.
I have used in on one occasion where it helped me when I think a normal visa card would not have. Other times the PNC cards service is good but slow and out of date. I call Amex and they answer in ten seconds and know my name and account. That is nice. You make fair points though. PNC's service is already good enough and situations like the one time it did save me are rare.
Smart logic behind the cards you keep. Thanks for sharing your thoughts!
I would probably keep it. It likely has trip cancellation and rental car protection and things like that.