Do you use a credit card linked to the UPI? If yes, you obviously have a higher propensity to overspend.
We tend to make a ₹40 worth transaction here or ₹50 worth transaction there – and as a result, we don’t even realise before we end up spending ₹10,000 or more. Not uncommon? Isn’t it?
To avoid this from happening often, it is recommended to keep track of your credit card spending, particularly the ones linked to UPI.
These are some of the reasons for which you should keep track of spending
1. Debt accumulation and overspending: Unlike a credit card, UPI transactions are more seamless and convenient. You only need to scan a QR code, and it is done. But when you spend more than you can afford to repay in time, you stand to incur additional debt.
2. Maintain a good credit score: When you fail to make payment on time, your credit score suffers. Therefore, it is advisable to keep track of your expenses so that your credit score remains intact.
3. Avoid late fees and fine: Another disadvantage of not tracking the expenses incurred via UPI credit cards is that you should avoid spending late fees and fines that accrue when you delay your credit card payment.
How to track UPI credit card spending
1. You can use banking apps and SMS alerts: Most banks provide real-time SMS and email alerts for transactions. You can use the bank’s app to check your credit card statement regularly.
2. You can track via UPI Apps: Several UPI apps categorise spending under food, shopping, bills, etc. You can check transaction history to monitor total monthly UPI credit card spends.
3. Use Budgeting and expense tracker apps: You can use several apps such as CRED which tracks credit card transactions and give insights.
4. Set spending limits: Another useful tip is to set a spending limit on your credit card to prevent excessive use. You can also set reminders for due dates to avoid late fees.
5. Review monthly statements: You should always check your credit card bill before payment to ensure all transactions are correct.
(Note: Using a credit card carries its own set of risks)
