6 Ways to Avoid

Unnecessary Credit Card Debt

Charge 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. If you can’t afford to pay cash, you can’t afford to charge it.

Avoid Balance Transfers

Avoid balance transfers for the sake of balance transfers. 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. Keep balance transfers to a minimum to avoid credit card debt.

Pay Your Balance In Full

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. You never have to worry about whether you can meet the minimum payment because your credit card has already been paid in full.

Avoid Cash Advances

Cash advances are one of the worst ways to use your credit card. If you have to use your credit card to get cash, there’s probably something wrong with your finances. A cash advance usually is one of the early stages of credit card debt. Work on fixing your budget and create an emergency fund so you don’t have to use a cash advance in an emergency.

Understand Your Credit Card Terms

Read through your credit card agreement and make sure you understand how interest will be applied to your account, when will you be charged a fee, and when does your interest rate go up. Understanding these features of your credit card can help you avoid credit card debt because you understand how using your credit card costs more.

Limit Your Number of Credit Cards

The more credit cards you have, the more you can charge. You may have great self-control, but it’s better that you don’t tempt yourself with thousands of dollars in available credit. Cut down on the number of credit cards in your wallet to avoid credit card debt.