Credit cards are good tools, but seductive. And it’s very easy for anyone to fall into trap of free money and lose control when it comes to shopping.

If this is something that happens to you every month and you end up paying more to your card than you should and it prevents you from having savings or investing, you should apply following tips to change it.

1. Set a limit amount
   Based on monthly budget, it is recommended to spend maximum 30% of income on debt. But the fact is that, not every month is like this. But you can dedicate an amount to saving, so setting a limit is very important.
2. Make it a habit to review your expenses
   Many times we keep using the credit card and don’t realize how much we have spent. To avoid this, use your bank’s application on cell phone and check card account statement. Do it every time you’re going to use it, so you can think about it better.
3. Don’t use the card for small expenses
   Remember to pay for the smallest purchases with cash. This way you will be more aware of what you are spending and how your money is reducing. By using the card we don’t perceive this and keep spending.
4. Plan purchases based on annual budget
   The first thing you should do at the beginning of the year is think about what important purchases you would like to make. And then accommodate them in your budget to see if you divide them into installments or if you will be able to pay for them in cash. For example, if this year you want to buy a new TV and new living room furniture. In what month will you have more money available? How much could you invest? Planning for large purchases keeps you in order and distributes your money better.
5. Set savings goals
   Because not everything is expense, you must also remember that maintaining a good level of savings is ideal. And for that, you must stop spending all your fortnight in purchases using card. Remember that every month, saving between 5 to 20% of income is recommended, to start building a fund.

One way to save, especially when it comes to deferred purchases in installments, is to look for a card with convenient interest rates.