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How To Stay Out Of Credit Card Debt

By Edited Nov 13, 2013 0 2

Credit Card Abuse

Credit cards are great for everyday expenses and it might seem like easy money but you can get into a whole heap of financial trouble if you misuse them.  Have you ever been to  he store and looked at the person ahead of you in the lineup? Some people carry dozens of different credit cards with them and have more than one maxed out.  People tend to use credit cards when they don't have any cash available but you still have to pay the bill at the end of the month.  Do to the ease of credit and a high spending limit, it's easy for the bill to grow to unmanageable levels.  In this article we look at how to avoid credit card debt in the first place and better manage your finances.

Major Purchases

You shouldn't use a credit card for a major purchase unless you know you can pay it off quickly. The longer you wait the more interest will accumulate and the more your item will cost you.  It's much easier to pay for the item if you already have the cash in the bank and can pay for the item in full or in a couple of monthly payments.  It doesn't make much sense to pay more for an item than what the store price was but if you use a credt card and don't pay for the item right away you're paying more than you should. Plan your purchases ahead of time and save your money before you buy.  It's easier to wait a couple of extra months and then buy the item in cash instead of using the card.  If you do use your card make the payment in full at the end of the month or make as large of a payment each month as you can until the item is paid off.

One or Two Cards

It's easier to manage credit cards when you only have one or two cards.  If you get a card for every store you shop at you're looking for trouble at the end of the month.  Resist the temptation to get more than a couple of cards.  If you have extra cards you're going to use them and your debt will spiral out of control.  Pay for items in cash or use debit to keep the purchase off of your credit card.  Don't make feflex purchases when you go to the store since it's so easy to put the item on the card and walk away.  Only buy what you truly need or can afford and limit yourself to one or two cards at the most.

Spending Limit

If you have  a large soending limit on your card consider having it reduced. If you are in credit card debt and pay off some of your balance have the limit reduced so you can't spend anymore on your card.  If the credit card company increases your limit be sure to ask them to reduce it again so you can't spend.  When you do get credit cards get a card with a very small spending limit.

Take Control of Your Spending

It's up to you to take control of your spending and avoid credit card debt.  Make yourself a monthly budget and stick to it. When shopping pay in cash or use your debit card.  Only pay with a credit card whn it's absolutely neccessary and save them for emergency situations only.  If you have the money to pay by credit be sure to pay off the items right away and avoid interest charges.  Avoid the burden of debt and take control of your financial future. 



Aug 14, 2011 5:05am
Good points in this article. Credit cards are very handy but it is also very easy to get too deeply into debt and then have trouble paying off the amount due.
Oct 21, 2011 12:09am
This article has some good suggestions for controlling your debt.
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