Financial Health: Doing a Credit Card Audit – Put the Money Back in Your Pocket

As a health coach and trainer, I talk a lot about taking care of your physical and mental well-being. But today, I want to shift the focus to something just as important—your financial health. Just like regular check-ups for your body, it’s essential to regularly check in on your financial habits. One simple way to do this is by doing a credit card audit. 

You might not realize it, but credit card debt can quietly sneak up on you, and before you know it, you’re paying more in interest than you should. A credit card audit helps you get back in control and, more importantly, puts that extra money back in your pocket! 

Step 1: Review Your Spending
Start by reviewing your credit card statements for the last 3-6 months. Take a close look at what you’re spending on and ask yourself: “Do I really need this?” Look for unnecessary subscriptions, excessive impulse purchases, or recurring charges that you’ve forgotten about. It’s time to cut out the financial clutter! 

Step 2: Check Interest Rates
Are you carrying balances from month to month? If so, review your credit card interest rates. High-interest rates can quickly spiral out of control, so it might be worth considering a balance transfer to a card with a lower interest rate or even paying off the balance with a personal loan to lower your financial obligations. 

Step 3: Identify Unused Cards
Do you have multiple credit cards but only use one? Consider consolidating or closing any accounts that you don’t need. Just be sure to understand how closing accounts might affect your credit score first (this is one to talk to your trusted mortgage broker about.) 

Step 4: Set New Financial Goals
Use this audit as an opportunity to set realistic goals. Whether it’s paying off debt or reducing spending, having clear financial goals will keep you focused and motivated. 

By doing a simple credit card audit, you’ll take control of your finances, reduce unnecessary spending, and keep more money in your pocket for what truly matters – hopefully that much needed beach vacation (or Shuswap staycation. 😉) Let’s make 2025 the year you prioritize your financial health just as much as your physical well-being!