Credit cards, to some people they are a gift and to others they are a curse. There aren’t many people out there in the world that don’t have at least one credit card in their wallet, and while not all of them have any credit card debt, some do.
There are only two ways to never get into credit card debt. The first is to never ever own a credit card. The second is to always pay your bill off immediately, no matter how big of a purchase you charged on it.
Credit cards not only cause you to lose money, mainly in interest charges, but they can also ruin your credit rating and make it difficult for you to get future loans, for cars or homes.
Don’t Purchase Things You Can’t Afford To Pay Cash For
If you feel as though you really need to have a credit card, only use it for items you can pay for. Credit cards do not give you free money, it is money you need to pay back promptly.
It can be helpful to have a credit card on hand for emergency, such as a car breakdown or an unexpected veterinary or hospital visit, but try not to use it for simple day to day shopping. That will also help you stay out of trouble.
Shop Around For the Best Deal On Card Companies
According to VPS, a company specializing in payment solutions, big changes are coming to the way your credit cards work and the way the stores scan them, due to all of the security breaches that have been happening.
Those changes could mean more of a cost to you from credit companies, coming in your annual charges or interest fees. You may also see changes in charges from ATM withdrawals when not done from your own bank.
Limit the Amount of Cash Advances You Take
Depending on your card company, your cash advances may have a higher interest charge. You may also end up with extra charges depending on the ATM you use. On top of all of that, you may also get charged if you want to get cash back at certain stores.
All of those extra fees may seem small themselves, but they can add up quickly. Save cash back and ATM trips for your debit card instead, and only do it at a branch of your home bank.
If you do find yourself in debt, the first step in getting back out is to set a budget. The second step is to get control over those credit cards that put you there! That may mean cutting them up until your debt is gone and you can ensure you know how to handle them properly in the future.