Unsecured MasterCards
Tons of Fun
That's how unsecured MasterCards feel. Especially if you have good credit and you get a $10,000 limit! Lots of people think of all the things they could do with a $10,000 spending limit, and that usually equates to tons of fun and out of control spending. There's no denying that spending money you don't have is a lot of fun, but you have to get a reality check at some point. How much can you afford to pay off in full each month comfortably? If the answer is $10,000, go for it. Have tons of fun! But the reality is that most of us can't afford to pay that much off in full each month. In fact, high limits like that are usually what leads to credit card debt.
But you can be responsible with unsecured MasterCards and still have tons of fun. Think of it as spreading your fun out over the course of the year instead of having all your fun at once. That should make it easier. And the truth of the matter is that people who have unsecured MasterCards with high limits like that probably don't ever max them out. And people who are responsible with their unsecured MasterCards don't charge up more than they can pay off in full each month.
If unsecured MasterCards tempt you to overspend, try these tactics:
- Put 'em on ice! That's right--freeze your credit cards in a glass of water. Then when you want to buy something, you have to wait for the card to thaw out--and you can't microwave it! That's just a dangerous idea. While you wait for it to thaw, you will have time to consider if you really need whatever it is you wanted to buy.
- Saving for a house, a car, a boat...whatever? Find a picture of whatever your goal is in a magazine or catalog and wrap your credit card in the picture. That way you're reminded of your goal whenever you're going to spend.
- Match whatever you spend. For example, if you put $200 on your credit card, transfer $200 from your checking account to a savings account. That way, you're sure to have enough money to pay the card off in full at the end of the month. Eventually you might find this to be a tedious task, and you'll just pay cash instead. This will automatically cause you to curb your spending habits. (Incidentally, did you know that when people buy things with their MasterCards, Visas or Discovers that they spend 30% more? It's true! There's the false sense of security from having a high limit that makes them less price-conscious.)
You can probably think of lots of ways to be responsible with your credit cards beyond these. Just don't be tempted by the spending gods! For, they always come back to get you is you display any kind of hubris with your secured MasterCards.
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