How to avoid falling into Credit Card Debt?

14 Mar

To avoid falling into debt with a credit card, you can

Let us go through this in detail:

1. Give yourself a 72-hour rule on big purchases and impulse buys

Experience reveals that one should temporarily pump the brakes while thinking of buying something that is not needed.
For this just three days would be sufficient to avoid unnecessary spending, but you may decide on a longer or shorter timeframe.
It’s easy to see something you want, either in a store or online, and get swept up in the rush of buying it then and there.
When you wait a few days to decide, you can approach things from a more logical perspective. Many have waited to order things and later felt that it is a waste of money.

The best way to use your credit card is to treat it like a debit card. Use your credit card only for purchases that you could pay for with the money in your bank account.
The trouble comes when you spend more because you know you’ll have time before the bill is due.
Then you are constantly catching up to your previous charges. By being in that position, a smart adjustment is to start paying your credit card bill right away.
In simple terms, just Log in to your account every day and pay off any charges you made.
An added perk when you do this is it helps keep your credit utilization low, which can make a positive impact on your credit score.

E-commerce makes it more convenient to buy just about anything these days.
That can be a good thing, but it’s also much easier to shop for items and services you don’t need. And with one-click ordering, the process goes even faster.
If you are the type of person who does too much online shopping, don’t keep your credit card info on file with any of the sites you use.
While this can’t completely stop you from placing an order, it adds an extra hurdle.
You will have to fish out your credit card and plug in all the information, instead of just picking out a product and submitting an order in seconds.

Shopping does not mean, just something we do out of necessity.
For many of us, shopping is an enjoyable activity. Unfortunately, that enjoyment comes at a cost.
Here’s one solution — replace that expensive activity with a low or no-cost alternative.
For example, you may Like to work out? Hit the gym or go for a run. If that’s not your cup of tea, you could read a book or watch a movie.
The important part is that you find something else you enjoy to substitute for shopping.

A credit card is hardly ever a good way to pay off an expense over the long term. You can typically get a personal loan with a lower interest rate, and then you could also have consistent monthly installment payments instead of a revolving line of credit with a small minimum payment.
It is always better to pay for purchases outright and stay out of debt. While a 0% intro card can help you avoid interest if you pay off the balance during the intro period, all it takes is one emergency expense to throw your payment plan off track.
None of these hacks are a foolproof way to prevent credit card debt, because there is no hack for that. It’s all a matter of monitoring your money and making smart spending decisions. These hacks simply encourage positive spending choices and help you build good habits with your credit card.

Here is an article which gives more suggestions to avoid being trapped in a Credit Card Debt..