Is There Such Thing As Frugal Credit?

When you are in debt, you are in a situation where you have to spend less in order to save money to pay for loans, credit card balances, bills, and other debts. A frugal life is one where you are trying to save money, earn more, spend less, and build wealth for the future. You may ask whether there is any such thing as being frugal when in debt. The answer to this is that you can be frugal when in debt or when you purchase on credit, but also you could be ruining or overspending when you purchase on credit or attract more debts. I have been in debt and have learned to embrace a frugal credit in order to get out of the situation.

When there is frugal credit
When you use something like reward credit cards, you may save yourself dollars that could have been otherwise spent. Purchasing products or services using reward cards may be one way you are trying to bring down the cost of purchases. In the end, when the cards are used appropriately, it could save individuals money.

Personally, I have the American Express Blue Cash Preferred card, which allows me to get back 6 percent cash when I purchase groceries and enjoy 3 percent cash back when I buy gas. If you are servicing a loan and decide to search for loan repayment plan that will save you money, it implies that you are trying to be frugal.

Cutting the cost of interest rates would mean you have money you can use in other financial obligations or even help you clear the loan in a short period. When you opt for 0 percent transfer cards and you are able to clear your credit card balance within the period of offer, you are also being frugal in your finances.

When there is no such thing as frugal credit
When you are using reward cards, it requires you to be conscious of your spending. If you are using reward credit cards to buy products that are within the budget, then that’s fine. Reward cards can be misused if you use them frequently to get more bonus or cash back. This is something that many people are trapped into. In my case, I use reward cards very carefully. I have a list of items I have to buy. I also try to buy in bulk because I have storage facilities like a chest freezer or deep freezer.

Buying in credit can be costly
It is likely that you will spend more when you carry your credit card than when you use cash. It is easy for you to swipe the card for a larger purchase than pay in cash for a large ticket item. People tend to feel the pain when they see they are paying in the form of cash for an expensive product.

However, when they have a card, there is none of that psychological connection and emotions attached to a face-to-face encounter with hard or liquid money. That’s why nowadays; people are leaving the cards at home when they go shopping to prevent swiping them for impulses.

In brief, there are situations where there can be frugal credit and in other situations, there is no such thing as frugal credit. It depends on the situations and case scenario. I don’t swipe my card to keep up with the Jones because, it is going to cost me unnecessarily. I try to lead my own life and therefore, not influenced by others to make financial decisions.

In the previous year, I had a credit card balance of about $1000 dollars, but by opting for the zero transfer credit cards, I was able to clear the balance within a period of 12 months and cleared the debt. I considered this a frugal credit because I was saving money on my credit payment.