3 foolproof techniques to avoid getting into credit card debt

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Using a credit card can be a great way to earn rewards and accumulate credit. But, whenever possible, it’s important not to have a balance on your credit card. This is because the interest rate on most cards can be very high, so your purchases will become more expensive and your card might be difficult to pay off in the future.

Sometimes life circumstances make it very difficult to avoid borrowing too much on your credit cards. But there are techniques you can use to dramatically reduce your chances of ending up with credit card debt. Here are three surefire ways to avoid ending up carrying a balance.

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1. Living on a budget

If you live on a tight budget and allocate your expenses so that you don’t exceed your income, you are much less likely to end up with credit card debt. Your budgeting method can ensure that you cap your spending to what you can afford, and you won’t be tempted to use the cards to fund purchases that are beyond your means.

Living on a budget also allows you to prioritize saving from an emergency fund. Emergency funds are essential to avoiding credit card debt because you can withdraw money from them when unforeseen expenses arise rather than having to carry the costs onto your cards.

2. Track your credit card spending

Once you have a budget and know your spending limits, it’s important to make sure you stick to them. You can do this by tracking the spending you make on your credit card (as well as the spending you make from your bank account).

If you keep track of your spending, you can make sure you’re on budget and not overdoing it by charging a bunch of things that you can’t afford to pay in full.

You can track your spending by logging into your online credit card account every few days to see where your balance is. You can also use budgeting apps that import purchases from your cards and automatically categorize them for you to make sure you’re not only sticking to your overall budget, but also sticking to spending limits you set for items. specific types of purchases.

3. Automate your payments

Finally, you should set up automatic payments from your bank account to ensure that you pay off your credit card balance in full when the statement is due. This ensures that you do not carry a balance which could incur interest charges.

If you do this, you obviously need to make sure you have enough money in your bank account so that you don’t overdraw it and charge you a fee. But as long as you’ve been tracking your credit card spending and staying on budget, this shouldn’t be a problem.

Following these three steps can help you avoid paying interest to your creditors. This way, you can enjoy all the benefits of using the card without incurring any interest charges which could harm your personal finances.


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