subject: Effective Suggestions To Escape Credit Card Debt [print this page] There are a lot of Americans who apply for credit cards just to build their credit status. However, as years progress, so do their debts. Credit card debt is one of the leading and most pressing issues in America today.
Before you become one to fall prey to this ugly trap, follow our tips to safely navigate away from credit card debt. You'll thank yourself in the long run.
The surest guarantee to staying out of credit card debt is to refrain from getting a credit card at all. Take some time to be honest with yourself and analyze your lifestyle and spending habits. If you are reasonable and diligent about where your money needs to go, you can create an effective budget that eliminates the need for credit cards altogether.
Look at your previous balances and ask yourself if you are living within your means. Are you buying impulsively even if you have no idea where you will get the money to pay it off? If your answer is yes, then you are in big trouble.
Look again at your expenses. What you should do is get a rough idea of what you make a month and subtract all the regular costs, like power, petrol, and food. Once you've done that, work out how much remains.
Make sure that you do not go beyond this amount when using your credit card so you are guaranteed that you will be able to pay it off.
One of the dumbest things to do is to not pay the whole amount off at the end of the month. This is the way credit companies and banks make all their money, by charging exorbitant interest rates on late repayments.
Once you have this debt, it is hard to shake. It will grow faster than you are able to reduce it, growing exponentially, unlike your pay packet. Remember this every time you use that card.
