Credit cards give people a reason to spend money. However, careless spending leads to debt and increases your expenses as a result. Why do people use their credit cards then when they know what the future holds for them—credit card bills? It is simple and convenient to reach for your credit card than give cash.

Hence, the question: “Does having a credit card increase your expenses?” becomes true for them. The following points will make you aware of the bad habits that may increase your expenses:

 You Spend More than You Earn
When you are using your credit card on a regular basis, you lose track on the material things you are spending your hard earned money on each day. If you continue to spend carelessly, your credit card debt will increase, especially if you miss a payment.

That is not all you need to worry about, as you will find it difficult to save money, as most of your money will go to paying off the credit card bill each month. Instead, why don’t you reserve paying items with a huge price tag with your credit card, only use it during emergencies, or use it pay off a certain utility bill.

 Your Wants Take Precedence over Your Needs
You are unable to differentiate between your wants and your needs. You tend to prioritize your wants above your needs. If you have developed a habit of doing this, you need to correct it. You need to refrain from using your credit card for clothes, shoes, fast food restaurants, or other high-end products, unless you really need it such as a brand new fridge, a microwave, etc.

Try this strategy: You see something you really like. Do not buy it, but go home. The next day, think if you really want it and if you do, buy it.

 You Use Your Credit Card More than Your Debit Card
When you use your credit card, you have a mindset that you will repay it at the end of each month. Repeated purchases on the credit card increase your bill. If you cannot repay it and do not pay before the due date, you will incur a late fee. If you have debit card, you will know you are spending your own money. When you are making a purchase with a debit card, you will think twice if you should go ahead or not. It is better keep your debit card in your to wallet and leave your credit card at home.

 You Make Random Purchases

You use your credit card to make random and minor purchases, a point discussed briefly in one of the headings. If you are purchasing grocery items such as a gallon of milk or bread with your credit card, you need to stop, as you are only increasing your expenses.

If you use your credit card without thinking, you are increasing your expenses, especially if they are already high.