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Or even better, will you be able to pay the balance in full when the bill comes due?
I’m thinking the answer is no.
This is a major problem.
You only have so much money to go around, and if you’re only relying on your memory of what you spent, you’re making a big MISTAKE.
You need an action plan that works.
The Pay Off As You Go Method Will Give You Happy Feet
Have you ever opened an extra savings account with an online bank? If yes, you’ll know it can really help you allocate money for a set purpose. You can set up as many savings accounts as you like. If not, it looks like this:
Whenever I make a purchase on one of my cards, I send the money straight to the savings account labeled with the name of the card I just used. When the bill comes due, I know I’ll have enough money to pay the bill because I already put it away for safe keeping.
I recently purchased clothes for my kids online and for other people who are hard to buy for since they are finicky. Shh! I used promo codes and the Pick2Pay app to maximize all of the rewards and savings possible but the most important part of the process is transferring what I just put on the credit card into the savings account. It really doesn’t matter how much savings you score, if you don’t have enough money to pay the bill. . . is that really savings?
This is awesome for four reasons.
You can stash away cash to make sure you can cover your credit card bills in full.
It moves you away from dipping into your emergency fund, if you have one. I hope you do.
It allows you to avoid credit card debt.
You can take advantage of discounts, rewards, points, etc. that credit cards offer without paying any interest. This is meant for people who do not have credit card debt. It’s for those who want to use their cards responsibly for the benefits. Paying in full and on time helps you avoid interest and late fees. This “how to” is for informational purposes. I am not a financial planner or credit card expert. Be sure to consult with a professional. Also be sure to read and understand the fine print of any offer before making a financial decision.
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