Weekly Roundup – How To Avoid Credit Card Debt

Posted by on Sep 1, 2014 in Credit Card Tips, Round up | 2 comments

Credit card are considered evils of our society, things that should be avoided at all costs. Why? Because they can lead to serious debt. Quite a number of people struggle under a load of Credit Card Debts. This is because they keep on purchasing goods and services without realizing that they are over spending thus they end up accumulating huge debts which mostly they struggle to pay. There are some steps you can follow to make sure you don’t get into credit card debt.

Charge only what you can afford

Don’t buy stuff you can’t afford. This might sound obvious, though it is a common trap that many fall in to. If you wouldn’t spend cash on something, why buy it with a credit card? After all, the day will come when you need to spend that cash to pay off your card, so always think twice before charging a large purchase.

Have an emergency fund

Set aside emergency fund to cater for unplanned emergencies that may arise rather than using credit card that might accumulate huge debt.

Create your own budget

Come up with your own budget based on the amount you posses and strictly adhere to the budget. Let every purchase you make with your credit card not forgetting their hidden charges be within your budget.

Pay on time

Pay your balance each month. If you can pay off the balance of your credit card statement each month, you will avoid paying interest charges. Interest and fees are really where credit cards get expensive, so avoiding paying interest at all costs.

Use Prepaid cards

Use a prepaid card whenever you’re shopping. By using prepaid cards, you get a particular amount of money to spend and you don’t have to worry about overreaching your credit limit.

Leave your credit card at home

Leave your card at home when you go shopping. Unless you know for certain thing you’re going to buy using the card, there is no need to take it with you. This will completely take the temptation of using the card for a spur of the moment purchase completely out of the equation.

Avoid cash advances

Avoid using credit cards for cash advances as they attract higher interest transaction fee and you don’t get a grace period.

What is your approach in avoiding credit card debts? Let’s us know in the comments below.

Amazing Reads of the Week

Life After Debt: Planning Ahead For Our Debt Free Future – Disease Called Debt

Top 10 Summer Memories – Financially Blonde

The Four Stages of Financial Independence – The Simple Dollar

If You’re Going To Succeed, You Have To Have a Plan! – Enemy of Debt

Defined Contribution Plans: Why Opting Out Shouldn’t Be An Option – Boomer and Echo

Luzern and a Novel Approach to History Interpretation – Elizabeth M. Covart

Challenges of A Traveling College Student – Twenty-something Travel

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2 Responses to “Weekly Roundup – How To Avoid Credit Card Debt”

  1. You offer some very sound tips. The only thing I disagree with is the usage of pre-paid cards. They tend to carry fees and charge you for using your own cash.

    Other than this one point I agree with all of your advice; good article.

  2. Great tips. Credit card debt can ruin some people!

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