Wednesday, April 1, 2026

2026-04-01 Credit Cards balance and bank

Having an unpaid credit card balance often results in a statement: "I owe money to the bank, but they can afford it". I will argue that it is not what caused the balance to be as high. Let's look at a bank statement and discover where the current balance comes from. Are they new shoes, groceries, travel, restaurants... what are the % of the things bought? 

Now let's think about spending a little more. Forget about buying less or of lesser quality. This is not a choice I am taking about. Multiple times, I have found that the food quality or pricing does not meet my expectations. Grocery stores overcharge for items on promotion. We are being pushed by marketing campaigns to buy things we need, but at prices that don't make sense. 

Let's look at some tricks our grocery stores use:
a) pushing us to buy low-quality bread or overpriced bread that becomes bad really fast. It costs around 0.5 USD to make a loaf of bread at home. So why do they charge $3 or even $5 for the same thing? And do not forget that the lack of bread, rice, or milk is the first thing that pushes us to go to the grocery store. Get your own bakery and reduce at least one grocery store visit every 3 months!

b) Restaurants do not offer the luxury as they used to! We see tired faces working extended hours to serve us frozen food. Avoid, avoid, avoid.

c) Having an email with Google or other platforms puts our email on a list for email campaigns. Even if you unsubscribe, you will always get a new email. It is time to say no to those providers.

d) Not moving our balance on the payment plan! This is a big one. Call the bank and get the balance on the payment plan. Decrease the available balance on the credit card now!

Decrease the tempting. We are living in a free country with salaries that people around the world hope to have. Lets start saving.