Being drowned in credit card debt brings several problems with it—higher interest payments, potential damage to your credit score, and delayed financial goals. Following healthy spending and payment habits can help you avoid these problems. Here are some ways to stay protected from credit card debt.
Purchase What You Can Afford
Having a credit card can tempt you to purchase items you can’t afford. You may tell yourself you can pay off the balance over time, but this is extremely risky as you cannot predict your future income. To keep yourself away from trouble, save for things you want to purchase and use your credit card only for buying things that you can afford to repay for immediately.
Don’t Give Your Card To Others
You’re the one responsible for your credit card. If you lend your credit card to someone else and they go all out while shopping, the amount will be charged to your card. Irrespective of whether the individual refuses to repay you, your credit card issuer will still hold you responsible for clearing the balance.
Minimize The Number Of Credit Cards You Own
The more credit cards you have, the more credit available for you to use. This also means that there are greater chances for you to get tempted and spend excessively, ending up in credit card debt. Limiting the number of credit cards you own can not only lower your use of credit but also make it easier for you to manage your monthly bills.
Always Make Timely Payments
Clearing your payments every month is one of the best ways to avoid credit card debt. Missing a payment leads to a penalty in the form of a late fee. In addition to this, when your next month’s bill comes, you’ll have two payments on your hands. This makes it difficult for you to catch up with your payments and causes financial constraints.
Clear The Full Balance Every Month
Paying off the complete balance due on your credit card every month is a sure-fire way of avoiding credit card debt as you have zero balance at the beginning of each month. You also don’t have to worry about whether you’ll be able to pay the minimum balance. To accomplish this, you have to be extremely disciplined and spend only on those items which you can afford.
