We all know it is important to create and maintain a budget. But we also know how easy it is to go over our budget. David Sant, the VP of Marketing for Cyprus Credit Union, says "It can happen to anyone." He adds, " With that in mind, you want to make sure you are not in a budgeting trap. There are a few signs to look for that you might be overspending."
- Constant high credit card balance. A good rule of thumb is to never utilize more than 30 percent of your available credit. If you find yourself maxing out or coming close to maxing out your credit card limit each month, you are most likely relying too much on your credit card. Track your spending for a month to see how you are using your money.
- Making only minimum payments. Ideally you should be paying off your credit card balance in full each month. Making the minimum payment each month won't hurt your credit, however you will be paying quite a bit in interest.
- Frequent shopping sprees. For a lot of people, shopping is a way to relieve stress. While this is okay occasionally, if you constantly find yourself out shopping or ordering new things online, it's probably time to step back.
- If you feel regret or guilt after making purchases, this may be a sign of a deeper underlying problem when it comes to your spending.
Find out more at cypruscu.com.