How many times have we heard this...
"I get in trouble using credit cards.
I need a process to catch up and get better control of their use."
The problem with Credit Cards use is rather basic...
The problem is NOT:
• The Bank makes it too easy to get a
• The card company sends mailers all the
• They charge a high interest rate
• They make it too easy to use
• That we use the credit card
• That it is too easy to use
The problem is:
• The credit card charge is not treated
as a form of payment
• The card use is not tracked like a
check is tracked in a check register
• There is no "Credit Card Register"
• People are already experiencing a
similar problem with Debit cards (by
not recording the expense)
• The same problem would exist if we
had no check register and just wrote
• We spend (charge) money we don't
• We asked for credit and now want to
blame others for giving it to us
• We signed the application when we
didn't have to!
The Solution is:
• Track / log credit card charges, like a written check is in the check register
• Maintain the equivalent of a check register for each credit card
• Use a spreadsheet for each credit card or, use IC-Home
• Add all credit card charges and compare to checking account balance
• Treat each charge like a check payment