How do you stay out of credit card debt?

| Jul 1, 2021 | Bankruptcy |

Falling into debt is a scary experience, and digging yourself back out of it can feel like the most satisfying thing in the world. But no matter how you go about relieving your debt, one thing is important: preventing it from happening again.

This often means taking a good look at your financial habits and making some big changes. This is especially true if you struggled with credit card debt in the past.

Change how you view credit cards

The Balance discusses ways of staying out of credit card debt. This is one of the biggest contributors to debt in the United States. Hundreds of thousands of individuals end up with some form of credit card debt every year.

Unfortunately, if you do not address the way you view and use credit cards, then you risk falling right back into debt after you dig yourself out. Thus, you need to examine your use of these tools, and even reevaluate how you view them.

For example, many people treat credit cards like borrowed money. They spend what they do not have, and then cannot pay it back later. Instead, try viewing your credit card as a debit card. Never buy more than you can pay off at that exact moment. This can keep you from struggling with payments when they are due.

Always pay off bills in full

Speaking of, it is important to pay on time every time. Pay the bill in full, as well. If you do not, you risk letting the debt start stacking up. Before you know it, you could owe thousands of dollars in interest alone.

Finally, do not have excessive amounts of credit cards, especially to get around the limits. They are there for a reason and you should not go over them, lest you spend more than you have and fall into debt once more.