Help - I rack up such a high balance on my credit card every month

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm early twenties, living with my parents. Zero debt, minimal bills every month. i just paid down a $900 balance last month and now I'm already at $700. HELP. Help me to stop. I'm saving as much as I can, but now since opening a credit card I'm racking it up so fast.

I want to keep it to like, phone bill ($100), gas ($23 every week), and occasionally groceries (probably $100 a month)

I'm increasingly amazed at how stupid some people are. Save yourself because no one else will. It's part of growing up.

Don't listen to Miss Grumpypants. Recognizing the problem is a very good first step. Self-discipline can be learned.

1) Leave the CC at home and go 'all cash.' It will hurt a little when you have to buy something.
2) look for a cheaper phone plan

Thank you! Idk how spending money makes me STUPID - obviously I'm aware that I'm a spender and want to get better about it.
Can't find a cheaper phone plan, I like Verizon.

You have to change your life style and give up "something" you like - eating out, Target, phone plan..etc. What are you willing to give up? You won't be able to save money without giving up "something."

[Anonymous]

Anonymous wrote:

Anonymous wrote:What are you spending the money on?

Restaurants, some clothes, frequent Target stops

And you can't figure out how your balance creeps up? You're too stupid to have a CC

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What are you spending the money on?

Restaurants, some clothes, frequent Target stops

And you can't figure out how your balance creeps up? You're too stupid to have a CC

I hate to add to the meanness but this poster is correct.

[Anonymous]

Let's not be too hard on OP. She is still in early 20s.

[Anonymous]

In my 20s I had a credit card mainly for emergencies. I'd use it for big purchases, but only ones that I could pay off right away. I just wanted to make sure the cash was line up first (moving from my savings) so I didn't want to risk a debit card over draft.

And that was it. I used a debit card, and I checked the balance daily. Do this until you have good habits.

I'd also suggest paying off your credit card weekly, not monthly. That way, after the first two weeks of the month, when you see you've spent too much, you know to cut back. Nothing "extra" the last two weeks of the month because you overspent.

Avoid Target. When you do go, make a list and don't buy a single thing not on the list. Seriously, Target can make you part with your $$$$s FAST.

[Anonymous]

I'm 12:46. One more thing: have your savings be withdrawn automatically. Treat your savings account like a bill. Put at least 25% of each paycheck into savings (maybe more since you are living at home, but start here). Have it go there as soon as the money hits your account.

Do not touch your savings unless it's a well thought out purchase. Like you need a new couch or your car needs a repair. Try to limit the withdrawls from savings to VERY rare occasions. Especially until you a have a better handle on your budget.

Each time you get a raise, don't spend it. Increase the amount you are saving. You are already living on your old salary, continue to live on it and increase your savings.

[Anonymous]

Anonymous wrote:Let's not be too hard on OP. She is still in early 20s.

She's old enough to have a CC, she's old enough for tough love regarding them!

[Anonymous]

Anonymous wrote:

Anonymous wrote:PP here, also use Mint.com. It will link to your cards and bank accounts. It will give you weekly summaries of where you're spending your money. It will help you budget and not overspend in a more thoughtful way.

Mint is free, but its not great for budgeting. If you want to set up a budget and can stick with it, I highly recommend YNAB. They'll give you a month trial before you have to subscribe. They also provide a ton of educational materials that will be really, really good if you can absorb it now while you're young and don't dig yourself into too big of a hole.

+100 OP it is a lot of work to set up a budget on YNAB and once you're set up, you'll need to record every single purchase you make, but it's completely worth it. I suggest you track your spending for 2 mo (you're going to need to go a lot deeper than: I spent my money on restaurants, clothes and Target) before you start. The concept is that you need to allocate every penny of your income to a category. You choose the categories. There's a way to record credit card debt/spending (it's a little complicated but once you learn the system, it works). Google "YNAB forum" for useful discussions that you can read during your 2 mo getting yourself set up.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm early twenties, living with my parents. Zero debt, minimal bills every month. i just paid down a $900 balance last month and now I'm already at $700. HELP. Help me to stop. I'm saving as much as I can, but now since opening a credit card I'm racking it up so fast.

I want to keep it to like, phone bill ($100), gas ($23 every week), and occasionally groceries (probably $100 a month)

I'm increasingly amazed at how stupid some people are. Save yourself because no one else will. It's part of growing up.

Don't listen to Miss Grumpypants. Recognizing the problem is a very good first step. Self-discipline can be learned.

1) Leave the CC at home and go 'all cash.' It will hurt a little when you have to buy something.
2) look for a cheaper phone plan

Thank you! Idk how spending money makes me STUPID - obviously I'm aware that I'm a spender and want to get better about it.
Can't find a cheaper phone plan, I like Verizon.

OP, I was sympathetic to you until I read this. Now I'm not. "I like Verizon" is not a good reason to put yourself in a deep hole of debt. Think about this. Think about the other stupid ways you spend your money. Then find a cheaper phone plan, and find other ways to reduce your spending.

[Anonymous]

If you live with your parents, why aren't you just on a family plan with them? My cell phone bill is very low due to the family plan. It's like an extra $40 including taxes to add another person on.

[Anonymous]

Get Dave Ramsey's Total Money Makeover book, and follow his budgeting envelope system.

Places like Target are deadly. I never get out of there for less than $100, no matter what I planned to buy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm early twenties, living with my parents. Zero debt, minimal bills every month. i just paid down a $900 balance last month and now I'm already at $700. HELP. Help me to stop. I'm saving as much as I can, but now since opening a credit card I'm racking it up so fast.

I want to keep it to like, phone bill ($100), gas ($23 every week), and occasionally groceries (probably $100 a month)

I'm increasingly amazed at how stupid some people are. Save yourself because no one else will. It's part of growing up.

Don't listen to Miss Grumpypants. Recognizing the problem is a very good first step. Self-discipline can be learned.

1) Leave the CC at home and go 'all cash.' It will hurt a little when you have to buy something.
2) look for a cheaper phone plan

Thank you! Idk how spending money makes me STUPID - obviously I'm aware that I'm a spender and want to get better about it.
Can't find a cheaper phone plan, I like Verizon.

I'm sure you do like Verizon. But that doesn't mean you cannot find a cheaper phone plan. TMobile, Cricket, Virgin Mobile - there are a lot of cheaper options out there.

I dont mind the $100 bill a month thats not my problem. I get great service all the time everywhere. No way in hell would I ever switch to any of those three.

[Anonymous]

Anonymous wrote:If you live with your parents, why aren't you just on a family plan with them? My cell phone bill is very low due to the family plan. It's like an extra $40 including taxes to add another person on.

They kicked me off because I have a full time job.

[Anonymous]

Anonymous wrote:Get Dave Ramsey's Total Money Makeover book, and follow his budgeting envelope system.

Places like Target are deadly. I never get out of there for less than $100, no matter what I planned to buy.

Sounds good I'll look into it. Ugh I know. I always need more stuff than intended

[Anonymous]

Anonymous wrote:I'm 12:46. One more thing: have your savings be withdrawn automatically. Treat your savings account like a bill. Put at least 25% of each paycheck into savings (maybe more since you are living at home, but start here). Have it go there as soon as the money hits your account.

Do not touch your savings unless it's a well thought out purchase. Like you need a new couch or your car needs a repair. Try to limit the withdrawls from savings to VERY rare occasions. Especially until you a have a better handle on your budget.

Each time you get a raise, don't spend it. Increase the amount you are saving. You are already living on your old salary, continue to live on it and increase your savings.

Thank you!!!!! Yea, I havent touched the savings in like 7 months. I used current paychecks to pay down the balance