Avoiding Credit Card Debt

In these days of financial strife and worry, it would seem that credit card debt has become as American as apple pie, yet with a bitter after taste that can leave some people struggling to keep their heads above the water.

On average, households with at least one credit card carry close to $9,500 in credit card debt. By practising controlled spending habits and using good old fashioned common sense, you can avoid drowning in a sea of unmanageable debt and growing interest charges.

Prioritize your payments
If you currently have credit card debt, focus on paying off balances on cards carrying the highest interest rates. While paying off these balances, continue to pay minimums on other cards so that you are always chipping away at the debts. Pay off your credit card balance at the end of every month. Never let the credit card balance continue to grow without making any payments. If you allow yourself to build excessive credit card debt you will soon find yourself buried in debt.

Decline new credit card offers and tear up existing cards with paid off balances
It is recommended that you only have one credit card at time, which should only be used for the most critical of emergencies like unexpected home repairs. Make sure your one credit card has a low annual percentage rate and be aware of incidental fees and charges. If you were forced to use your credit card for an emergency, pay off the balance immediately. Paying minimums each month only leads to prolonged and growing debt. Also, never sign up for a credit card so you can get a free gift. Card companies prey on students and solicit on campus by offering t-shirts, caps and CDs as an incentive for filling out a "free" application. While you may never use the card, know that each time you apply, your credit is affected.

Don't spend beyond your means
Credit card debt can be avoided by following one simple rule: If you don't have the money to pay for it, then don't buy it. Never rely on credit cards for day to day expenses like food and entertainment. Avoiding excessive credit card debt is an excellent way to enjoy financial freedom. Credit card debt will hold you back from truly having financial stability. Don't allow yourself to be consumed with credit card debt.