Credit card spending in India reached ₹1.84 lakh crore in January 2025. Managing expenses wisely is essential to avoid financial troubles. Here are five simple ways to control credit card usage effectively.

1. Maintain a Low Credit Utilization Ratio Keep your credit utilization below 30% to protect your credit score and avoid high-interest charges. Ideally, experts suggest using only 10-15% of your credit limit. For example, if your credit limit is ₹1 lakh, keep your spending under ₹30,000 to maintain a strong financial profile.

2. Set a Budget and Track Expenses Create a budget and monitor your spending. Check your monthly statements to identify unnecessary expenses. Use SMS alerts and reminders to track transactions. Stick to a budget and avoid overspending just because you have credit available.

3. Automate Payments to Avoid Late Fees Set up autopay to ensure timely repayments and avoid late fees. Choose credit cards with no annual fees to reduce costs. Be mindful of extra charges from add-on features that may increase expenses.

4. Convert Large Purchases into EMIs For big-ticket expenses, opt for no-cost EMIs to spread payments without additional interest. This helps in managing expenses while avoiding unnecessary debt. Regularly check your credit report to maintain a good score for future financial needs.

5. Practice Spending Discipline Avoid emotional or impulsive purchases. Use credit cards only for essential expenses. Keeping old credit cards active helps maintain a long credit history, positively impacting your credit score.

By following these simple strategies, you can manage credit card expenses effectively and stay financially secure without accumulating debt. Always consult a financial adviser for personalized guidance on managing credit wisely.

Source: Mint