Simply, it will show you exactly what you have been using on your credit card.
What is a year-end credit card statement?
It is just like a complete summary of your previous transactions from your credit card. Simply, it will show you exactly what you have been using on your credit card, it will break down your spending each month, let you know where you spent the most money, which subscriptions you've been paying and how much interest you have paid over the past year.
How does it help?
It helps you understand your money habits so you can be aware of where should spend or not. Reviewing this statement is legit. Because of your money habits make smart plans for the future. Let's break down why it is essential and how to use it:
a) Understanding Your Spending Habits
Remember, your statement shows exactly where your money flows. Did you spend a lot on eating out, shopping online, or going to the movies every weekend? It is not about what you do, it is about money that should not be wasted on less important things. Then, year-end credit helps you figure out your money flow and if there are areas where you can spend less after reviewing this statement.
b) Planning Your Budget
This is one of the main goals of people's resolution. if you know your budget pattern, you can make a budget for this year. Also, you can set goals for how much you want to spend on different things like necessities such as rent, bills, and groceries, over your fun stuff, and savings, of course. All you need to map out the budget for this year.
c) Paying off debt
If you have got a lot of credit card debt, your statement makes you realize a plan to pay it off. You can focus on paying cards with the highest interest rates first or consider moving your debt to a card with a lower interest rate. Paying more than the minimum amount due each month can help you pay off debt faster.
d) Adjusting your spending habits
Understanding where you spend more money can help you rethink some choices. You will realize the money you spend more on somethin
