It is all too easy to find yourself in the traps of credit card debt. Those shiny, plastic pieces of money are easy to obtain and even easier to spiral out of control. The best way to establish good credit is through responsible financial habits that free you from high debt and leave you open to extra money if you need it. There are many tips that can help you keep a handle on plastic spending. Nine Tips to Avoiding Credit Card Debt When you are choosing a credit card only accept a card that offers a low interest rate. This is the most important factor in how fast your balance will rise. If possible, opt for cards with either low annual fees, or none at all. To keep yourself out of debt, only charge what you can pay off in full each month. If you can't pay your balance in full, make sure to make the largest payment that you can comfortably afford. Never, ever miss a card payment, period. It may be tempting to use your card for a cash advance, but these advances come with huge interest rates and extra fees. They are never worth it in the long run. Avoid cash advances If you want the ease of carrying a card instead of cash, but don't want to get in over your head, opt for a debit card from you bank instead. These cards look and feel just like a Visa or MasterCard, but they are simply a bank card that deducts your purchases straight from your bank account. You pay as you go, and never get stuck with high monthly bills. Create a credit card budget for yourself and stick to that budget. Don't go over your allotted budget amount no matter how tempting extra purchases may be. Switch your current cards to lower-interest credit cards to decrease credit card debt. Ask for a low credit limit, to ensure that your credit card debt will not rise above a certain point. As your income rises and your bills decrease, allow yourself to ask for a larger limit. If you simply can't afford to charge any more on your card, leave it at home and do not tempt yourself into thinking that you may be able to pay more than you know you can. |
