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.
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