Effective Strategies for Controlling Spending and Avoiding Debt
Strategies to Prevent Overspending and Manage Debt
Sometimes, spending less boils down to setting rules for yourself. Read on to learn more.
Avoiding Credit Card Debt
TransUnion reports that as of the fourth quarter of 2023, Americans owed $1.05 trillion in credit card debt. While some debt may be unavoidable due to unforeseen circumstances, overspending can contribute to financial challenges. Automating savings, checking credit card balances weekly, and using the 24-hour rule for impulse purchases are effective strategies to avoid overspending.
Automating Savings
- Set up automatic transfers from your checking account to your savings account each month.
- Avoid tapping into savings for non-emergencies.
Checking Credit Card Balance
- Monitor your credit card balance weekly to track your spending habits.
- Adjust your spending to avoid accumulating a balance you can't pay in full.
24-Hour Rule for Impulse Buys
Wait 24 hours before making unplanned purchases to assess the necessity and avoid impulse buying. This rule can help you make more mindful spending decisions and prevent unnecessary expenses.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.