7 Credit Card Tips For Avoiding Excessive Debt

Credit cards and consumer debt are worse than ever in today's world. The credit card companies like Visa, Mastercard and American Express sell the idea that with their card you can buy whatever you want. Unfortunately, many of the people who use the cards can't afford to buy those things and eventually the debt catches up with them.

Here are seven tips for avoiding excessive credit card debt.

1. Pay them off every month

This may seem obvious, but the best way to avoid excess debt is to simply pay off your cards every month. The interest on credit cards is often very high, and if you carry a balance from one month to the next it can snowball into a significant amount quite quickly.

2. Don't charge what you can't afford

This is really an extension of the first tip, but to avoid creating a debt that you can't manage it's critical that you use your credit cards responsibly and don't buy things that you couldn't otherwise afford.

This is the most difficult thing for many people, but unfortunately there is no simple solution - it's a matter of willpower and discipline.

3. Don't carry your cards all the time

If you carry your credit card all the time, it's too easy to pull it out when you see something you would like to buy. If you don't have the card with you, it means you'll have to go home to get it and return to the store, which gives you a chance to reconsider the purchase.

If you're really serious about making it difficult to use your credit card (but still need it for emergencies and other situations that might require it), put it in a can of water and put it in the freezer.

If you really need it, you can melt the ice and get your card but it won't be accessible on a whim.

4. Pay more than the minimum payment

If you aren't able to pay your cards off completely every month, at least make more than the minimum payment. Paying the minimum does next to nothing to lower your balance - it's really just paying the interest for the month. Making minimum payments every month, it could take you 20 years to pay off your card. The more you can pay on it, the faster it will be cleared.

5. Don't apply for more cards than you need

Most people really only need 2 or 3 credit cards but once you get one, you'll start getting applications for many more. Having more cards than necessary just creates more opportunities for poor spending and an increased debt load.

6. Consider a line of credit instead of a credit card

If you own your own home or have other assets, you may qualify for a line of credit from your bank. A credit line generally has a much lower interest rate than a credit card if you need to carry a balance.

Plus, you can often get a Visa or Mastercard "debit" card that charges things to your line of credit instead of a credit card account. This gives you the same convenience, but a more reasonable interest rate if you carry a balance.

7. Seek help if your debt is out of control

Trying to juggle credit card debt is one of the most stressful things that people need to do. It can lead to all kinds of other problems if it's allowed to continue.

There are many credit counseling and debt reduction services that can help you create a plan for repaying your credit cards and getting control of your debt. They can't help you, however, unless you take the first step.

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