Keeping track of credit card expenses is critical to not spending more than you should and having trouble paying your bill in the future. When losing track of how much is being spent on the card, it is possible to not have the money necessary to pay the total charged and to get into debt by resorting to the minimum payment or, worse, failing to pay the bill. The revolving credit card, next to the overdraft, charges the highest interest on the market. Having too many debts in this payment method creates the snowball effect: it leads to default and, consequently, gets your name dirty in the market. The best way to avoid this situation is to control spending and pay your debts on time. To carry out this control, it is worth creating a spreadsheet for a credit card, noting the expenses made and organizing the payments.
Create a spending tab on your credit card spreadsheet
The first step in creating a credit card spreadsheet is to choose the program to be used. You can create your document in traditional Microsoft Excel or in Google Sheet. Start with the “Expenses” tab. In this space, you must specify all the expenses you had with the card, such as supermarkets, purchases, airline tickets, etc. It is important if you do not forget to note any expenses, no matter how small. Only in this way will you be sure of the amount you will have to pay on your next credit card statement.
Insert a tab for month’s spend data
Then create a second tab: “Cards”. In it, you will enter the data related to the purchases of the month. In this part it is possible to have access to your balance. Check the “Cards” tab constantly to see how much you have already spent from your limit and how much your bill should be in the next month.
Stay tuned to installment expenses
Many people are in the habit of splitting purchases by credit card. If you share any expenses, be sure to put them correctly in your spreadsheet: each installment in the respective month of payment. It is also important to write down the parcel number. That way, you’ll know how much you still have to pay in the coming months. A warning: only install a purchase as a last resort. It is very easy to wind up in the future and have trouble paying off the parcels. The ideal is always to save in order to acquire the good insight.
Keep track of the categories where your biggest expenses are
It is essential to specify, in addition to the amount and where the purchase was made, in which categories are your expenses: Food, Leisure, Supermarket etc. This way, you can identify in which areas of your budget the highest expenses occur and where it is possible, if necessary, to cut expenses.
Who does not have time or patience to feed the spreadsheet to credit card manually, can make the control of the expenses in that means of payment with the help of applications. One of them is Good Lenders, which already shows credit card expenses automatically. With this, there is no need to record an expense for expense, which saves time and facilitates control.