UPI credit cards: Why should you track your spending; how to do it?

Are you using a credit card connected to UPI? If yes, then you are probably at a higher risk of overspending without even noticing it.

It often starts out small, harmless purchases- ₹40, ₹50- and by the end of the month, you're spending over ₹10,000 without a second thought. Does this sound familiar to you?

Although it can be comfortable to use a credit facility when connected to UPI, it is important to monitor your credit card use so you don't fall into this trap. By monitoring your spending, you may be able to take control of your finances and stick to your budget!

Why you should track your credit card expenses? 

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, this helps to manage credit card expenses effectively. 

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)