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6 Tips For Debt-Free Credit Card Spending

September 11, 2018 Credit cards can be a great way to stretch your money until payday and a handy way to buy online. (And who doesn’t love to watch their credit card rewards pile up?!?) But are you reaching for your card more often than you should? If you find yourself making the minimum payment month after month, that’s probably a sign the answer is “yes.” Ready to get out of credit card debt — or avoid it in the first place? We’re here to help. Five steps to get you out of credit card debt. Credit card debt is a reality for lots of us. According to the Federal Reserve Bank, the average credit card debt for families in the U.S. is $6,2701 and those that carry a balance will pay an average of $1,155 in interest charges.2 Tired of spending your hard-earned paycheck on credit card interest? Check out our . Six tips to keep you out of credit card debt. This time of year can be hard with the one-two hit of back-to-school, plus, before you know it, the holidays. Own your credit card spending with these five tips.

1. Use Summit's Climbr®.

This FREE, easy-to-use tool will help you stay on top of your spending, set a budget and so much more. Let help you track your money.

2. Understand your credit cards.

How many credit cards are in your wallet? Do you have too many and are they tempting you to overspend? What are the interest rates and fees on each? Knowing might help you decide which card is smarter to use. And do you find yourself justifying a purchase because you’ll earn rewards? If you can’t pay off your bill each month, your interest payments could be more than the reward is worth.

3. Buy mindfully.

Before you pull out your card, slow down and ask: Do I really need this? Will I be able to pay for it when the bill arrives? What will I have to give up to afford this? Put a 24-hour hold on your purchase and see if you still feel the need to buy it the next day. For more on how to be thoughtful about your finances, read our tips on money mindfulness.

4. Leave your credit card at home.

This is the easiest way we know to avoid overspending!

5. Set up a separate account for credit card payments.

Look at your credit card statements for the last six months to see how much you usually spend. Decide what you can really afford each month, then set up a separate account and deposit this amount of money as soon as you get your paycheck. Only use this account to pay off your cards.

6. Pay your credit card bill the same day you buy.

Whenever you buy with your card, transfer the money from your savings account and use Summit’s online bill payer to pay off your card balance right away. You’ll know exactly where you stand in terms of credit card expenses and are less likely to run up a bill you can’t afford. Use your credit card wisely and it can be a great tool! And if you don’t already have a Summit card, check out your . Smart money tips brought to you by  , Summit’s exclusive financial wellness program.
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2 You might also be interested in Here are some tips on how to prioritize your debts and bills, negotiate with creditors and get your late payments back on solid ground. Strengthen your credit and learn about the new changes happening to your score. Here’s everything you need to know. Sometimes having a little extra cash is the only thing between you and your dreams. Check out these financial tips to be smart about borrowing money and avoid common mistakes. With so many credit card options out there, it can be difficult to choose one that's right for your finances. Here are the do's & don'ts of credit cards to help you decide! Did you resolve to make this the year you took charge of your finances?  It’s crazy to think that the year is almost halfway over, but, hey, it is! Which means it’s the perfect time to take stock of how you’re doing on managing your finances. Credit cards can be a great way to stretch your money until payday and a handy way to buy online. (And who doesn’t love to watch their credit card rewards pile up?!?) Ready to get out of credit card debt — or avoid it in the first place? We’re here to help. There’s no better place to borrow than Summit – in the entire U.S.! Here’s the proof. Did you know Summit gives you more value than any other credit union in the U.S. when it’s time to borrow money? Is “your baby” about to leave home? Whether that has you mooning over their old first day of school photos or plotting how to repurpose their bedroom (or, maybe, both) there’s one topic you need to tackle now: smart spending. Did you resolve to do a better job with your finances in 2018? Good for you! We know you can do it! To help, we’ve come up with a catchy name — your Money Smart Year (don’t you feel inspired already?) Featured Products Certificates Checking Accounts Home Equity Loans Home Loans Business Banking Certificates Checking Accounts Home Equity Loans Home Loans Business Banking Financial Education Upcoming Events Programs Tools & Calculators On-demand Webinars Podcasts Upcoming Events Programs Tools & Calculators On-demand Webinars Podcasts About Equity in Money™ About Summit Careers News Community Giving Equity in Money™ About Summit Careers News Community Giving Help & Support Contact Us Member Support Center Schedule an Appointment Find a Branch Contact Us Member Support Center Schedule an Appointment Find a Branch Please read the following before proceeding to: The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. NCUA Insurance Estimator Privacy, Security & Accessibility Rates, Fees, Terms & Disclosures Routing Number *  The Wisconsin's #1 Mortgage Lender designation is based on the number of loans in 2022, gathered from the Home Mortgage Disclosure Act data compiled annually by the Consumer Financial Protection Bureau. The results of the data were obtained through the LEI: 254900NTAC4H10MGSU23 **  SBA Lender of the Year Award for Credit Unions as awarded by the Small Business Administration of Wisconsin in 2023. Copyright 2024 © Summit Credit Union. All rights reserved. If you are using a screen reader and are having problems using this website, please call 608-243-5000 for assistance. Insured by NCUA