Credit cards can be really handy when an emergency crops up, or when you have things to pay for before you get paid. On the flip side, they can also be a gateway to debt. If you want to know a few simple tips and tricks for avoiding credit card debt, keep reading!
- Tip number one sounds simple, but its an easy one to overlook. Only use the card for things you can afford. Don’t splurge just because you feel like you can… you really can’t! Save the card for times when you have a bill to pay but your pay hasn’t come through yet. The most common way of getting into credit card debt is just by overspending.
- Another mistake people often make is missing card payments. If you want to get into debt, this is a great way to do so! Make sure you know when your payments are so you don’t miss them. Once you miss a payment, you’ll be forced to pay double next time, as well as the late fee; this makes it so much harder to catch up.
- A simple way to avoid credit card debt is to pay off the full balance every month. By doing this, its impossible for you to get into debt. You won’t have to stress about paying off the minimum repayment because the card has already been paid in full.
- The more credit cards you have, the more likely you are to get yourself into financial trouble. A simple solution? Limit how many cards you have. Having only one credit card will be easier to manage and also less to pay off.
- If you’re working and have a decent credit score, its relatively easy to get a credit card, but don’t make the mistake of ignoring the fine print. The credit card agreement will have information about interest rates, late fees and default rates. Knowing the terms of your agreement will stop you from falling into traps of increased interest and late fees.
- Temptation is one of the problems with having a credit card. Knowing you have a couple of thousand on the card to use can lead to frivolous spending, especially when you’re out and about. A great way to avoid this is by leaving your card at home. If you don’t have your card with you, its impossible to use it for impulse buys. This will help to stop you from buying things you can’t afford.
- It can be quite easy to lose track of your spending; this could lead you to spend more than you can pay back. To avoid this, keep a log of what you’ve spent, and check that against your bill when it arrives.
No one wants to be in debt, especially when you get to a point where you’re just paying off interest. But by following these tips, you’ll be sure to stay on top of your credit card.