When it comes to credit card, it is always a substitute for easy money. For those who are living on a fixed source of income, getting a credit card in hand is something like a key to all-time money access. But, credit card is beneficial for those who know how to use it wisely. Yes, most of the time people get into the trap of credit card debt without even realising it. And, when it comes to crawling out of a debt trap, it is not everyone’s cup of tea. So, you must be wondering about the best ways that will help you avoid the credit card debt you. Here we give you some useful tips & tricks to avoid the credit card debt trap:
Don’t Miss Your Credit Card Payments
Try not to miss your credit card payments. You should always pay full in each month in a timely manner. Yes, through this way, you will never carry a balance with you. However, if it is difficult for you to remember the dues dates, you can set a reminder in your phone regarding the same and stay away from credit card debt.
Never Take Cash Advances
If you want to avoid debt in the real earnest, make sure you avoid withdrawing cash via credit card at the ATMs. Withdrawing cash can shoot up your credit card bill as the interest rate on the same normally falls within 2.5-3.5 per cent of the withdrawal amount. So, avoid taking cash advances to negate the possibility of mounting debt on your credit card.
Avoid Things That You Can’t Afford
Many times due to peer pressure or to maintain their status, people buy very expensive things which they really can’t afford. They don’t give a second thought, considering that they also need to pay back the same later. So, try to avoid those things which are out of your pocket or budget. It is a smart move to go for only such things which you can easily pay later without falling into the debt trap.
Don’t Give Your Credit Card to Others
So often people give credit card to their friends or family members, thus end up worsening their financial life cycle. When you give a credit card to someone, chances are high that he/she may misuse your credit card. As a result, the bill, which will come up can take your breath away and give you sleepless nights. So, denying them your credit card will surely help you in keeping the credit card debt miles away.
Avoid Having Multiple Credit Cards
Doesn’t matter how fancy credit cards can be, use them judiciously to be on the safe boat. Else, you will get financially drowned with no one to take you out of that situation. Judicious use is practically impossible when you have more number of credit cards, which can inflate your bill to the maximum extent. Different credit card companies tempt you to buy a credit card on the back of your good credit history, but you can honour their request at your own peril. So, never fall into the lure of multiple credit cards to avoid credit card debt trap.
The author is Founder, Deal4Loans.
