Introduction:Credit card debt is a serious problem in our lives today. Some consumers use credit cards like it is free money and before they know it, their debt is nearly impossible or out of control to pay off.
One way to avoid credit card debt is to use your credit card just like you do a checkbook and keep a check registry of each charge and deduct it from a budgeted amount. Some consumers use credit cards to purchase gas or groceries so they can conveniently pay for them once a month. This only works if you keep track of your charges and stay within the budgeted amount.
Avoid credit card debt by paying off all of your monthly charges each month before interest is applied. Except for an occasional purchase, make only credit card charges that you can payoff in a month.
Avoid accumulated debt on credit cards by being aware of the costs in interest you have to pay if you do not pay off your credit card charges each month. Interest charges on unpaid monthly balances adds up fast and can be as high as 25% or more. That means for every dollar you spend you will be charged as much as $.25 for each unpaid dollar.
Use a low interest loan from your bank or credit union to buy items that you can not payoff in a month. Online banking makes it very easy to setup and access a low interest pre-approved loan account that you can for this type of purchase. This allows you extended time to pay off the loan at a lower interest rate. Do not use a credit card for this type of purchase and you will avoid credit card debt.
When all else fails, cut up your cards and stop using them if you find yourself getting behind in credit card charges. Some of us do not do well with this type of payment system and must stick to paying everything with cash. Management is the key to avoiding credit card debt.
You know what you make each month, so use a credit card to charge for things that you know you can payoff in a month. Use your credit card as a tool in place of a checkbook or cash but never to extend your purchasing power that will land you in debt with high interest charges.
Great job on this list!
Some might say there is just one Step on How to Avoid Credit Card Debt and that is to just cut up the card!
Great advice on how to avoid credit card debts. H5
Good advice on how to avoid unwanted credit card debt!
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