There are many ways to end up with credit card debt: medical bills, car repairs, education costs, overspending… Fortunately, there are also tried and true ways to avoid it. Here is a video on the 10 ways you can avoid credit card debt.
10 Habits to Avoid Credit Card Debt Video
While credit cards can be a positive part f your personal finances, they can also become a danger if not understood or treated with care. Rather than having to eliminate credit card debt, you can focus on building a positive credit history. Watch this video to learn about all 10 habits to avoid credit card debt.
- Read the Fine Print- understand all the terms before opening up a new credit card or take the time to evaluate your current cards.
- Stay on Budget- whatever you use the credit card to purchase, must be part of the budget. It’s not extra or free money.
- Check Your Accounts- this is the best way to spot fraud or identity theft and make you aware of your spending.
- Don’t Miss Payments- try setting up automatic payments or reminders for yourself.
- Pay off the Balance- avoid interest and build a positive credit history.
- Know Your Credit Usage Ratio- it’s best to use less than 30% of your available credit, but don’t go without ever using the card either.
- Avoid Cash Advances- there are typically very high fees and interest rates for cash advances. Avoid this habit to stay financially fit.
- Think Before Buying- avoid impulse spending and credit card debt by thinking through large purchases before buying.
- Make a Plan- once you understand the rules, create a plan to best use your credit card.
- Stay Accountable- reach out for help if you are struggling with credit card debt.
Now that you are more familiar with good credit card habits, start using them right away to reduce credit card debt!
To speak to a credit counselor today about budgeting and managing your finances, call 800-769-3571.