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8 Ways To Beat Credit Card Debt!

credit card debitOne of the easiest traps to fall for these days are those set by the credit card companies. They lure you in with many promises and before you know it, you’re trapped in the world of credit card debt. However, there are simple ways to avoid this situation altogether. They are:

  1. Use Cash, Not Cards: credit cards are not a replacement for money, they are simply small amounts you borrow from the bank to pay for goods. It is always better to pay with money, because you don’t incur interest and debts on the money you have spent.
  2. Pay Off Credit Card Bills In Full, On Time: Many people tend to pay only the minimum required amount for credit card bills and often do this after the first date for payment has passed. Paying the bills on time and with the exact amount prevents interest from building up and drowning you in debt.
  3. Create A Budget: If you have a set idea of  how much you can spend in one month, then you will tend to stick to it and not waste money by using credit cards
  4. Get Rid Of The Extras: Cancel the services of the credit cards you don’t use. They tend to keep charging fees and interest on singular payments, that can get you into money troubles for a long time.
  5. Don’t Use Cash Advances: When you get a cash advance through a credit card, you rack up a huge interest rate that is levied daily and not monthly. Paying off this credit card debt can be a bigger hassle than you ever imagined.
  6. Don’t Avail The Extra Services And Schemes: One way in which credit card companies make money off their customers is by signing them up for schemes and clubs that cost an extra bit to maintain and participate in. Steer clear of these and use your card only for emergencies.
  7. Get A Better Interest Rate: Plenty of credit card companies tend to reduce the interest rates on the cards if you have a good track record. Go ahead and ask your company if you can do the same and use it to cut down on credit card debt.
  8. Never Max Up On The Card: If you overload your card, you may rack up a sizeable debt and damage your credit ratings. This is why having two credit cards is a great idea to avoid credit card debt and manage your finances.