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How can you avoid credit card debt?

On Behalf of | Apr 5, 2023 | Debt Relief |

Credit cards are an invaluable tool for many, but at the same time, they can cause numerous problems for individuals.

For example, it is difficult for some to avoid falling back into the cycle of credit card debt after getting out of it once. How can a person keep themselves out of this pit?

Change how you view a credit card

CNBC discusses ways of avoiding credit card debt. One of the biggest changes a person can make happens entirely mentally. In essence, a person should stop viewing their credit card as a credit card, and start looking at it as a debit card.

In other words, a person should never spend more than what they currently have on hand to pay off.

Make payments on time

Next, always make payments on time and in full. Paying the minimum amount can keep a person out of hot water, but it is a terrible habit to get into.

On top of that, it creates debt quickly, as the bill will only continue to grow and grow in size until a person ends up buried underneath a mountain of debt again. This includes the generation of interest, which accumulates faster than one may anticipate.

Avoid using a credit card where possible

For many, it is simply too tempting to treat a credit card as money they do not actually have yet. To that end, it may serve a person better to use cash or a debit card instead of a credit card, as it will keep them within their spending range.