My wife and I have a shared phobia.
… Credit Card statements.
Now you are probably either thinking “What the -” or sitting there hugging yourself, nodding in agreement.
It’s not so much the statement itself, rather the feelings it triggers and what it represents.
As you know, some people are good at handling their finances and others are, well, like my wife and I. It doesn’t help that we are scared to death of anything related to the topic.
Once in debt, forever fearful.
So how do we cope with it?
Our solution is simple but takes effort, planning and determination.
Make sure your cards are set to pay off in full and set realistic credit limits. If you pay it off in full each month, automatically, then you will only ever see “Paid” rather than that scary “where are we going to find the money to pay this off” feeling or worse “we will be paying this off the rest of our lives”. With a reasonable limit you will never spend what you can’t afford to pay back.
With this two point combination we have managed to see credit cards as a tool and not something to be feared, well, most of the time.