I like to pay my credit card bills every week or at least every other week. It sounds excessive but it keeps my spending in check because I’m not misled by what it says in my checking account. When my checking account says I have $1,000, I feel like I have a lot of extra spending money. But then I’m faced with a $980 bill at the end of the month and realize I was cutting it a bit too close. By paying my credit card bills every week, I see a more accurate reflection of how much I really have in my checking account. I can also easily tell if I’m spending too much too fast.
An added bonus to this habit is I’m able to spot errors or fraud charges right away. By skimming through my most recent transactions right before I pay, my purchases are pretty fresh in my mind so I know when a restaurant accidentally charged me $21 when I only paid $12. If I waited a month to review my statement, I probably wouldn’t have remembered how much I spent on dinner that night and just chalked it up to a random expensive meal.
How often do you pay your credit card bills? Do you pay them frequently like me? Wait till right before it’s due? Or somewhere in between?