How to Avoid Credit Card Debt

Many people find themselves in a financial hole they can't dig themselves out of by using their credit cards too liberally. Here are some tips on preventing credit card debts from increasing beyond your control.

Difficulty: Moderate

Instructions

Things You'll Need:

• Discipline

1. Enjoy the benefits of a debit card. The beauty of a debit card is it gives you the efficiency and practicality of a credit card, except for one major difference: you can never owe anything. You'll find that charging expenses to a card directly linked to your checking account causes most people to cut down on frivolous purchases as opposed to using a credit card.

2. You don't need a handful of credit cards. Majority of people don't need more then two or three credit cards in combination with a debit card. However, some people have wallets filled to the brim with Diner Cards, two Mastercards, three American Express cards and reap no rewards or benefits from any of them.

3. Pay your everyday charges and bills with your debit card or cash. From grocery shopping, dry cleaners, to a day at the mall, use your debit card. Reserve your credit card for emergency purposes only. Not only that, if you pay off your credit card every month on time you will be building positive credit as well.

4. Know your card. Make sure you understand your card's APR, any benefits you may receive, when minimum payments are do, and how high your limit is. You'd be surprised to hear how many people apply and get approved for a credit card and have no clue what their interest rate is. Knowledge truly is power in this situation -- the more you know the less likely you are to push yourself into a corner.