Prevent Impulsive Spending: Put Your Credit Cards on Ice

For whatever reason, a lot of us are naturally inclined to spend money, often in a very compulsive manner. We see an item that we like, we convince ourselves that we must have it, we tell ourselves about all the benefits from purchasing the product, we think it'll add happiness to our lives. It could be a big-screen TV, a new computer, some new clothes, or something as small as a quick trip to McDonalds, just about anything! Most of us always end up giving into our impulses because we have quick access to money through our credit cards. Fortunately there's an easy way to stop impulsive purchases in their tracks, freeze your credit card, literally.

Think about it. Fill a bucked half-full with water, let it freeze, put your credit card in there, throw some more water on it, and then let the top part-freeze. This way your credit card is encased in ice, and if you ever want to make a purchase on it, you'll have to wait for it to unfreeze.

This will force you to give yourself time to reconsider the purchase. As long as the credit cards are around and easy to use, chances are you'll keep spending money on them! If your credit cards are in a freezer, and it'll take at least 3 hours to get to them (unless you go crazy), you'll have to give yourself time to think about whether or not you really wanted to make that purchase, and if it's something you really need. Often times just giving yourself some time will dissuade you from making a purchase.

If you use your credit card responsibly, pay off the balance at the end of the month, and don't have issues with using credit cards to buy things you couldn't otherwise pay cash for, than this tip isn't for you. You've already shown that you can prevent most impulsive spending with your credit card.

But if you have a bit of problem with impulsive spending, I suggest living on a cash basis with the envelope system. This way you'll only be able to spend the money that you have, and nothing more. You can keep your credit cards around for emergencies in a nice big brick of ice, so that you don't impulse with them the second you see a purchase you'd like to make!

Even if you have no intention of ever using a credit card again, it probably makes sense to leave the account open. The reason for this is that if the amount of available credit that you have decreases, your debt utilization percentage will increase on your credit report, and that'll hurt your credit score. Leave them open, but put them in a place where they'll be almost impossible to get at, say, incased in ice in a deep-freeze somewhere!