Safe Swipe: The smart way to use a credit card

Managing credit card spends has become an essential as­pect of modern financial planning, as the rise in digital payments and consumerism can sometimes tempt even the most prudent individuals to overstretch their finances. How­ever, with some intentional strategies and mindful habits, you can harness the benefits of credit cards while avoiding the pitfalls of debt and overspending.

Managing credit card spends has become an essential as­pect of modern financial planning, as the rise in digital payments and consumerism can sometimes tempt even the most prudent individuals to overstretch their finances. How­ever, with some intentional strategies and mindful habits, you can harness the benefits of credit cards while avoiding the pitfalls of debt and overspending.

Before swiping your card, make a habit of reviewing the last few months of credit card statements to identify spending patterns. Categorise your expense—essentials, non-essentials, impulses, and subscriptions—so you can see clearly where adjustments are needed. Next, set a realistic personal credit limit for yourself, not just relying on the limit your issuer provides. A rule of thumb: your card spends should fit well within your disposable monthly income, ideally not exceeding a third of it. Assigning sub-limits for categories like grocer­ies, entertainment, and shopping further improves control.

A series of smart, practical steps can make a big difference in credit card management. For high-value, non-essential purchases, apply the 24-hour rule—wait a day before making the decision, reducing the chances of impulse buying. Stick to paying your bill in full, not just the minimum, to avoid hefty interest charges.

Tracking your credit utilisation ratio is crucial; using less than 30 per cent of your available limit can safeguard your credit score. Regularly reviewing your card statements also helps you spot errors or fraudulent charges quickly.

Many banks and fintech platforms now offer comprehensive apps to track your spending in real-time, set custom alerts, and moni­tor your credit score. Using these tools brings clarity to your finances and supports disciplined credit card use.

By setting good ground rules, keeping emotions in check, and leveraging modern tools, managing credit card spends can become a path to financial empowerment, rather than a liability.