5 Ways to Avoid Credit Card Debt

Just by swiping the card, you've got the stuff of dreams. But unconsciously, secretly you start drowning in credit card debt.

 

The use of credit cards is now more incentive to various promotions from various card issuers. There are restaurants that offer various discounts, shopping, hotels, up to 0%. Not even a few women who are now also beginning to use credit cards for everyday purposes.

 

Although a lot of credit card, but no longer its time you become 'sloppy shopper'. You also do not need to be buried in credit card debt. This tips!

1. Only Use Credit Cards for Purchases Planned

Only use credit cards for purchases that are included in your monthly regular budget. That way you can pay your credit card debt management and avoid the obligation to pay interest. Do not use more than 75% of your credit card limit to avoid debt and keep good records of your credit at your bank.

2. Use Credit Cards Instead of Soft Loan

Soft loan interest rates are usually lower than credit card. If forced to spend large amounts and can not pay in time faster, better looking for soft loans or personal loans to banks. Personal Loans do not use the calculation of blooming flowers such as credit cards in general. Make sure the amount of monthly installments of no more than a third of your income or requested installment period longer.

3. Record Usage

Not considering how much has been spent to be the beginning of the disasters caused by credit card. Make sure you always save the receipt and expenditure records of each transaction in a record shop. If your credit card usage can be monitored via personal banking site, do not forget to open the site to see how much you spend each week.

4. Always Use a Debit Card

Shop wisely, use the money available to buy goods that you want. If forced to use a credit card, make sure you can pay off its debt in full at the time bills come. Another trick if you still want to use credit cards is, after payday, input your spending budget money into the credit card. Do not use credit cards more than the amount of money you have deposited.

5. Reduce Your Credit Card

The point is, do not have too many credit cards to avoid debt. Hard to do when choosing which ones should be discarded. A discount card at the restaurant X, B card discounts at dept. P stores, while the C card discount at the coffee shop Z. Then where do you throw? Think again, if you drink coffee every day at the coffee shop Z, whether you eat in restaurants every day X? Choose a credit card that gives the most profit on your regular expenses.