As a result of the pandemic, a lot more people have had to rely on their credit cards for purchases they would normally pay for in cash. Part of this is because so many people are shopping online and using cash is not an option. While this type of shopping has been convenient for many it has also increased the amount of interest they may now have to pay on their credit cards. With so many people not being able to work it means that many are just making minimum payments on the cards instead of paying off their monthly balances.
Using the Cards Wisely
It is not uncommon for people to have several credit cards. They may have done this so they can take advantage of what some of these card providers offer by way of incentives. For example, cashback, points, and travel awards. When circumstances are tough and are affecting one’s financial situation it is important to re-think how these cards are being used.
For example, some who are into traveling may use credit cards that give them air miles more frequently. Now as a result of the pandemic thinking about travel may not be a priority for some time to come.
Instead of using the credit card that has air miles for everyday purchases a better choice would be one with lower interest rates or cashback opportunities. Unless of course, the individual is still financially secure enough to pay off any credit card balance they create during the month.
Shopping Wisely
Shopping online is certainly convenient and it has become a way that people can protect themselves by not having to go out to shop during the pandemic. At the same time, it is easy to get carried away with this convenience because of its easy use.
The key is to set some online shopping rules and sticking to these. These should include:
For Grocery Shopping:
Plan the meals for the week. This should begin by first checking what is in the cupboards and freezer and planning to use this up first. Then what is not available and needed according to the meal plans can be shopped for.
Some people are tending to overstock or hoard food as they fear shortages. This was more prominent when the pandemic first started. However, most have now come to realize that this is not a concern. Most items have been easy to obtain.
Making a shopping list just like you would do if you were going out to shop. This is especially good when shopping for groceries online.
Take the time to do some comparison shopping. Being able to shop from the comfort of your own homes means more time to look for the bargains. Not only in how much each item costs but any other incentives that are being promoted. Such as free delivery, or discounts on specific items, or a discount when shopping over a specified amount.
Cut Down On The Take Out
This approach can be a little tricky. Most of us want to support our local restaurants but at the same time money may be tight. A compromise is in order here. By cooking inexpensive meals throughout the week will leave enough money from the food budget left over to perhaps order a take out meal once a week.
Save A Little Extra
With some careful meal planning and frugal shopping, there should be a little extra money left over. This is money that could be applied to the credit card payment for the month which will help to reduce the interest.
Other Concerns
It isn’t just credit card debt that you may be concerned about. We are entering into the tax season which means you have an obligation to file your taxes. If this is a burden for you then why not take advantage of my tax preparation services. Here at Toronto Acountantant, we are all about getting you what you are entitled to through properly filed tax returns.
