Just Say No to Credit Card Debt

10 ways to help you stay clear of credit card debt.

1. Record and Track. Know where your money is going by keeping track of every cent. Put each purchase under a specific category such as, household, automobile, groceries, clothing, entertainment, etc. There are programs to purchase that can help with your record keeping or you can simply use a pencil and paper. Evaluate your spending at the end of each month and decide if those purchases help or hinder your credit card debt. Then decide what spending you can cut back on and what your necessary purchases are.
2. Create a List. List the debts you owe and the amount each one is for. Next to each amount, list the interest rate and the minimum payment you owe. This way you will be able to account for your debt and know how to consolidate or reduce your debt.
3. Have a Plan. When a record has been made of your spending, then you will be ready to create a plan for you spending. Begin by calculating how much you need for each category and what you are willing to put as a dollar value on that area. Situations may change and adjustment may need to be made as you go along. Having a plan will help your gain control of your spending and make them positive habits.
4. No Extra Credit Cards. Cut up or cancel unnecessary credit cards that are not helping your bad credit situation. Creditors want your business and will try to make you stay with them by extended credit or lower interest rates. Don't be fooled by flattery. If one card is all you can handle, keep it only for emergencies. Your best defense is to pay off your credit card balance every month. To get out of credit card debt, it will be necessary to pay more just the minimum monthly payment.
5. Use Debit, Not Credit. If you have the need to use a card, but don't want to get stuck with credit card debt, use a debit card. With a debit card, your spending is immediately withdrawn from your checking account. Now you can have the feeling of spending, while not creating more debt.
6. Good Credit Investments. Credit can work for you when certain items have been purchased. A mortgage loan for a home, education loans, or a new business loan are some of the investments that can help to improve your bad credit.
7. Credit Is Not Real Money. When you have applied for a credit card that comes in the mail and are promised a $5000 line of credit, it is not a raise in your income. Remember that it is borrowed money. You have not earned it and it is not free of charge. This money is lent to you and must be paid back and with interest. Make sure that when you are a credit card holder, there is a responsibility to pay the credit card back and on time to avoid adding to any credit debt.
8. Look Around and Stay Smart. Shop around for the best interest rate a credit card company can offer you. Purchasing a car using an auto loan instead of a credit card will often give you lower interest rate for your purchase. If there is a different company willing to offer you a better interest rate than what you currently have contact your credit card company and see if they will match or beat their competition. Most likely they will match lower the rate. If they don't, take advantage of the other offer, while watching for hidden fees.
9. Save, Save, Save. Many things come up unexpected in life. Be prepared for a time when you will need some money in savings. Even though you may have credit debt, try to find a way to save some income, even if it is very small. It will help you in the long run and real money you can fall back on.
10. Save But Don't Spend Yet. Think for the future with long-term savings. Plans can be set up to help you save your income and retire with ease. But don't be tempted to use that money when you are in a bind. Try to keep that investment as a last resort and look for other ways to get out of debt.