Are you in a lot of credit card debt and you wish that you could do something about it? A credit card is one feature that most people can’t do without and unfortunately, it is one of the things that is getting them into more debts. However, this is not to say that credit cards are bad but you just need to have control over them. You should never let them control you because if that happens, you will continue getting into deeper and deeper debts that coming out may be a real challenge. If you are in credit card debt at the moment and you’re looking for ways through which you can come out of it fast, here are our top recommendations on how to avoid the credit card debt and also how to come out of debt that’s already have quite easily.
Have an emergency fund
Most people got into a lot of credit card debt because they got faced with certain emergencies which they could not find immediate funds for. As such, they considered their credit cards as a means of emergency savings or emergency funds that they could access and use to pay for the various financial needs they had. However, this is not a very good approach when it comes to managing personal finances. It is highly recommended that you should have some emergency funds that you can access to meet unexpected financial situations. If you have such a fund, you will not easily get into your credit card debt should you be faced with the need to raise some amount of money within a short time. Therefore, if you haven’t been saving towards an emergency kitty, be sure to start that as soon as possible.
Don’t charge more than you can afford
If you have to use the credit card, then you must learn how to use it correctly. You should make a habit of only charging or using a credit card for the purchases that you’d normally afford. If you decide to get something and its way too expensive than what you’d normally afford in cash, then you should not even think about using a credit card. If you can’t afford it in cash it means that you can’t afford it with a credit card even though you may have the illusion that with a credit card, you can just charge what you want. Therefore, stop the habit of charging more than you can afford on your credit cards. It is hurting you in more ways that you can imagine.
Don’t use a credit card to gamble
Some people use credit cards to fund their New Zealand casinos so that they can have money to gamble with. In other words, they are using debt to gamble. This is the worst way to think if you are really serious about getting out of credit card debt. You cannot use borrowed money for gambling. If anything, gambling is not a very good way to generate income. You may win on a couple of occasions but in most of the times, you will be the one losing money. Therefore, if you use credit card debt to gamble, and you end up losing money, it will be a double dose for you. You will have to pay the credit card debt and you shall have also lost money in gambling. Therefore, if you’re gambling and you want to get out in any kind of that, it is a habit you must stop before you can have the clarity and the purpose to attain your financial freedom.
Don’t make unnecessary balance transfers
It may sound like a good idea for you to transfer any remaining balance from one credit card to another. However, this is a mistake you must avoid because ultimately, you will end up paying a lot of money. If a card has some balance and it was at a lower rate, and you transfer its balance to a new card which has a higher rate, you will end up paying the balance which you had on the lower card at the new higher rate. Therefore, deplete all the balance if you can, but don’t transfer any balances.
Don’t miss credit card payments
If you have credit card debt, then you will have to pay it and it is imperative that you always make the payment on schedule. Delaying the payments may incur additional costs and penalties that may make you pay more money at the end of it. Besides, the late the payments will hurt your credit ratings and this may hamper your ability to get credit facilities in the future. Therefore, make a very good plan on how to repay the debt and always ensure that you pay promptly. If possible, strive to pay more than the minimum required so that you may clear the dead as soon as possible.
Don’t share your credit card
Don’t lend your credit card to anyone if you desire to avoid getting in the more credit card credit card debt. It may be tempting to give your card to a friend or a loved one so that they can go shopping with it and you may even agree on the amount of money that is supposed to be spent. However, once the card leaves your possession, you lose all control over it and whoever you give it to can spend as much as they want and you will be the one responsible for the repayment. In this manner, you will get into unnecessary debts because you wanted to please someone. Your credit card should always be yours and yours alone and if you have to give them to someone then be sure that you owe them some financial responsibility.
If you follow these tips, then you’ll be in a good position to avoid most of the credit card debts you may get into. Additionally, you will be in a good position to know what to do so that you can not get into more debt and you can come out of the debts that you already have. It’s always sad to have credit card debts because they’re very limiting financially and you will never be at peace if you know that you owe someone money.