Nowadays, the main
source of debt creating is usually considered in the usage of credit cards and
people who carry credit cards are on risk of indulging in debt. Consequently,
when you use the credit card, you have to face many sacrifices to re-pay the dues
against the usages you made. To use the credit card rationally, there are some
tips which can be helpful for controlling credit card debt.
1. Maintain an emergency fund
Usually you generate
credit card debt for major car repairing or medical expenses. Due to having no
savings, you find no way instead of paying from credit card. In this situation,
an emergency fund doesn’t let you utilize your credit card.
2. Charge as per your affordability
Whenever you go for
shopping, first see your affordability for the good you want to purchase. If
purchasing the good on cash looks unaffordable, then don’t purchase.
3. Unnecessary transfer of balances.
Stop balance transferring
from card to card for avoiding due dates. If there is a lower interest rate in
transferring the balance then it looks that you are going to take the benefit
of it. Otherwise, this practice only decreases your balance due to balance
transfer fee.
4. Don’t skip payment of credit card
Paying regularly to
credit card is the best way for avoiding its swelling. Once you miss your
payment in any month then for next month you will be burdened enough for paying
two months amount along with late fee charges. In this drastic situation, you
may use another credit card as to making both ends meet.
5. Pay full balance on monthly basis.
For avoiding credit
card debt, paying off credit balance on monthly basis looks appropriate. In
this way, you don’t have burden of balance and also eliminate the risk of
getting into the credit card debt. Having paid full, you do never worry about
minimum payment and this practice also shows that you spend rationally,
allowing yourself only to purchase what you can afford.
6. Know the signs of credit card debt.
Most often people don’t
pay attentions on the warning signs of credit card debt and keep using the card
and consequently cross the limit. Recognizing the signs of credit card debt
timely, gets you stop using it further and you get away from going into debt altogether.
7. Abstain from cash advances.
When you pay cash
using your credit card, you may face troubles in financial matters. Instead of
that, withdrawing cash from bank for this usage would be a rational choice. As
the cash advance is the initial stage of credit card debt. So working on fixing
budget for creating an emergency fund is a good practice to abstain from cash
advances.
8. Don’t lend your credit card.
When you give your
credit card to anyone for using, he may use it extravagantly and it means you
will have to pay for the debt for your not making expenditures and ultimately
it will suffer you with the credit card debt.
9. Apprehend your credit card terms.
Get full apprehension
of credit card agreement and pay full attention on how interest will be applied
and when you will be charged a fee. Knowing about these features of your credit
card will make you fully aware at the time of using your credit card.
10. Keep your number of credit cards in limit.
The more credit cards in numbers you have, the more charges you will have to
bear for them. Don’t try to temper yourself that you have thousands of dollars
available in your credit cards. Eliminate the number of credit card to avoid
the credit card debt.
