7 Credit Card Tips To Avoid Money Problems
Consumer and credit card debt is far worse today than it has ever been. The reason is the tactic that credit card companies use to lure you to use the cards. The lure being you can get anything you want and pay for it later. There are some folks who can’t afford to purchase things they really need outright so they use the credit cards to help them out. Unfortunately, this debt will catch up to them. Still, there are seven things you can do to avoid dealing with excessive credit card debt.
1 – Pay Off Your Bill Each Month
It seems obvious to do but really the single best way to keep from getting into excessive debt is to pay the credit card off each month. Bear in mind that the interest rate on credit cards can be extremely high. Should you carry a balance each month, the interest can skyrocket quickly.
2 – Can’t Afford It, Don’t Charge It
If you’re not able to afford a debt, you shouldn’t create it. Make sure you use your credit card responsibly; don’t purchase things you can’t afford to buy. For many folks, this is extremely difficult but there’s no easy answer. You must exercise discipline and willpower.
3 – Don’t Carry The Credit Cards With You All The Time
If you always carry your credit card, you’ll be tempted to use it every time you see something you really would like to have. Without it in your hand, you’ll have to stop what you’re doing, go home, get it and go back to the store. This gives you time to really think about the purchase. Is it really worth it?
If you really don’t want to use your credit card except only for emergencies, consider putting it in a can of water and freezing it. When you need it, melt the ice and get it then. At least this way, you can’t use it just whenever.
4 – Pay Additional Money, Not Just The Minimum Due
Most folks can’t pay off their credit cards in one month. So, if you can’t, make sure you pay more money on what’s due than just the required minimum. When you pay just the minimum, you do almost nothing to reduce your balance. You’re just paying the interest. It could take you nearly 20 years to pay off a credit card by the minimum amount. Pay more money on it and you pay it off faster.
5 – Don’t Get More Cards Just Because You Can
Most folks really just need three cards. However, getting one usually leads to more and more applications. If you have more cards than you really need, you can get into further debt before you know it.
6 – Get A Line Of Credit, Not A Credit Card
If you have assets like a home or car, your bank might qualify you for a line of credit. This tends to have a lower interest rate than a traditional credit card, if you need to carry a balance. With this line of credit, you’ll also get treated to a “Mastercard” or “Visa” debit card. This charges your line of credit. It gives you the same convenience as a credit card company but with a much more reasonable interest rate.
7 – Get Help To Get Out Of Debt
If you’re finding it impossible to get out of credit card debt, don’t feel bad… get help! If you fail to get help, it could cause even more problems down the road. Seek out the assistance of a credit counseling service or debt reduction service, which will devise a plan to help get your debt under control. But, they can’t assist you without you taking that first step!