5 Tips to Avoid Credit Card Debt

Anyone who has a credit card risks carrying too much credit card debt. Once you’ve accumulated too much credit card debt it can take several years and lots of sacrifice to pay it off. As you use your credit cards, keep these tips in mind to avoid credit card debt.

Have an emergency fund.

Many people create credit card debt after a major car repair or medical expense. They were forced to pay for the expense with a credit card because they did not have any access to savings. having an emergency fund helps you avoid credit card debt by providing you with cash to use when an emergency fund helps you avoid credit card debt by providing you with cash to use when an emergency arises.

Change only what you can afford

Avoid the mistake of using a credit card to buy things you really can’t afford. You can avoid credit card debt by purchasing only what you can afford to pay for. Here is a general rule to follow: if you cannot afford to pay cash, you cannot afford to charge it.

Avoid Unnecessary balance transfers

Don’t transfer balances from card to card to avoid your due dates.  If you transfer a balance to another credit card, have a good reason, like taking advantage of a lower interest rate. Otherwise, your balance will simply increase because of the balance transfer fee.

Don’t miss credit card payments

Staying on track with your credit card payments is one of the best ways to avoid credit card payment. Once you miss a payment, your next payment due will be much higher since you’ll have to make two payments plus pay the late fee. It gets tougher to catch up, puts a strain on your budget, and tempts you to use your credit cards to make ends meet.

Pay your balance in full each month

If you want to avoid credit card debt, pay off your credit card balance every month. That way, you’ll never carry a balance. And you’ll completely eliminate the risk of getting into credit card debt. You never have to worry about whether you can meet the minimum payment because your credit card has already been paid in full. Of course, this means you can only spend as much as you can afford to pay off in a single month.

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