We capped our credit card bill at $2,000

For the past three months, Hubs and I put a hard cap on our credit card spending. We agreed that together we’d spend no more than $2,000 in each cycle. And each month we made our goal!

A lot of Bargain Babe readers use debit cards – when I asked on our Facebook page, 9 out of 10 readers who responded said they had NOT A SINGLE credit card in their wallet.

Have you ever set a cap on your debit or credit card spending?
The problems with a hard cap on spending

It is a vague way of...Read more:We capped our credit card bill at $2,000

The Minimum Payment Trap in Credit Cards

Credit cards have high interest rates, which make them one of the most expensive debt we can acquire. And unfortunately many people have fallen into the trap: use your card as an extension of their income, and have been used to pay only the minimum required each month.

However, this fact makes it a serious damage to our Personal Finance. Minimum payment can extend our indebtedness for many years, with a very high cost.

To understand it in a simple way, consider the example of a person...Read more:The Minimum Payment Trap in Credit Cards