Using a credit card can feel like a financial superpower, offering convenience, rewards, and the promise of building a strong credit history. However, it also makes it all too easy to fall into the trap of impulse spending, which can quickly turn your financial savviness into a debt spiral.
The good news? There are plenty of strategies to help you enjoy your credit card while keeping impulsive purchases in check.
1. Apply for a Credit Card with Built-In Spending Controls
Credit card application in the Philippines has become easy. With modern digital banks coming up with fresh offerings that are fully accessible online, you can finish the process in minutes and receive fast approval. With ease of access and many options at your fingertips, which one do you choose?
To narrow down your options, look for credit cards that are fully accessible and customizable with an associated digital app. For instance, you’ll have full control over your Landers Cashback Everywhere Credit Card through the Maya app. You can track your transactions in real time, set up rules for spending limits, and freeze or block your card if needed.
2. Create a Budget and Stick to It
Budgeting isn’t about restrictions. It’s about taking charge of your finances. When you create a budget, set a reasonable amount that aligns with your financial goals. Implement strategies like the 50/30/20 rule, where you allocate 50% of your income to your needs, 30% to your wants, and 20% to you savings or debt repayment. You can adjust depending on your means or current circumstances. You’ll still have funds for impulse buys but with a total spending cap.
3. Leverage Credit Card Rewards Wisely
Credit card rewards programs can be a double-edged sword. While they offer fantastic benefits, they can also tempt you to spend more than planned. Instead of using rewards as an excuse to splurge, think of them as a way to save on necessities. So, when considering a new credit card application, prioritize cards with substantial cashback rewards to maximize your benefits.
For example, with the Landers Cashback Everywhere Credit Card, you earn up to 5% cashback on Landers purchases, 2% on dining, and 1% on other qualified expenses.* You can use the points you accumulate to deduct from your bill the next time you shop at Lander.s
4. Treat Your Credit Card Like a Debit Card
It’s easy to equate your credit card with free money because you lose the "pain of paying" factor associated with handing over cash—at least within the given grace period.
One strategy for combating this mindset is to treat your card like a debit card. Transfer an equivalent amount from your on-hand cash pocket money or from your everyday expense account to a designated savings account immediately after using your credit card. Since each purchase becomes tied to available funds, you might think twice before impulsively buying an item.
5. Disable One-Click Purchases
Online shopping often results in impulse buys because of the "one-click" feature, which is available on some e-commerce websites or platforms. If you disable this, you will then need to click on several buttons when you’re shopping, giving you time to think twice before buying.
6. Keep Yourself Informed
You can use digital tools like the Maya app to monitor your expenses in real-time. Regularly reviewing your credit card statements helps you identify spending patterns, spot unauthorized charges, and keep tabs on your balance. By being aware of your spending habits, you can make more informed decisions and avoid unnecessary purchases.
If your banking service provider offers the feature,It’s also a good idea to set up notifications for spending thresholds, such as when you’ve hit 50% of your credit limit.
7. Avoid “Emotional Spending”
Emotional triggers, such as stress, boredom, or even excitement, can sometimes make you shop impulsively to pass the time and get relief from your emotions.
Knowing why you splurge is usually the first step toward changing your spending habits. Acknowledge your emotional triggers through a journal that details your moods and spending patterns. Analyze what you write to identify connections. Then develop healthier coping mechanisms such as exercise, meditation, hobbies, or reading—productive activities that keep your mind off shopping.
8. Plan Your Purchases
Take a moment to plan before making a purchase. Create a list of what you need and stick to it. If you see something you like that’s not on the list, wait 24 hours before buying it. Often, this cooling-off period helps you figure out whether the item is a necessity or just a fleeting fancy.
9. Automate or Schedule Your Savings
Automating or scheduling your savings is another effective strategy to prevent overspending. Setting up automatic or scheduled transfers to your savings account each payday minimizes available funds for impulse buys. Starting small, even with PHP 500 per paycheck, for example, you’ll be able to grow your money significantly over time.
10. Use a Separate Card for Fun Purchases
To avoid mixing essential and discretionary spending, consider using different cards for different purposes. For example, use one card strictly for groceries, bills, and other essentials. Then use another for non-essential purchases like dining out or shopping. This segregation makes it easier to see where your money is going and helps you control your impulse buys.
Credit cards should be used as tools to maximize your purchasing power, not as a way to overspend. With the strategies above, you can harness the power of credit card rewards while keeping your impulse spending under control. Interested in applying for a credit card that works for you? Apply today for the Landers Cashback Everywhere Credit Card. It’s fully integrated into the Maya app, which means you can submit your credit card application, track spending in real time, pay your credit card bills through your Maya Wallet, and even monitor how much cashback you’re earning all in one place.
*Transactions that don’t qualify include: cash in, cash advance, quasi cash purchases, casinos and gambling, fuel, supermarket, pharmaceuticals, utilities, telco, and government.
