It’s more than likely for most people today to have more than one credit card. This is one of the reasons coupled with a troubled economy that’s leading to a bad situation of credit card debt for most. If you’re the owner of multiple credit cards, then it’s extremely important for you to realize that the best solution would be to stay out of credit card debt in the first place. Otherwise even you’ll have to think of credit card debt settlement or consolidation in future.
However, at the same time it’s equally important for you to carry on building your credit rating. You should know that a good credit rating is absolutely crucial for you to get hold of the best interest rates, be it for an auto loan or a mortgage. So, if you’re thinking on the lines of avoiding credit card debt by stopping to use your cards altogether, then you’ll not be helping your credit rating at all.
Few ways and tips to stay out of credit card debt
Read on to find out how you can actually avoid credit card debt without stopping the healthy growth of your credit rating.
- Use limited number of cards: It’d be a good idea to carry 1 or 2 credit cards instead of carrying a number of them. Your lenders would then get the impression that you can successfully handle your credit card debt. Moreover, if you have too many credit cards, then it becomes that much easier for you to miss a payment or perhaps budget your payments in an incorrect manner.
- Try budgeting your payments: It’s important for you to practice a proper budget plan as far as your credit card payments are concerned. The most important factor that most forget is to figure in the credit card payments in their monthly budget. You should fix a certain cap on the maximum amount that you’ll spend through your credit cards. This should be determined keeping in mind your income.
- Always make payments on time: You shouldn’t fail to make your credit card payments on time. If you make late payments, then you’ll be giving the credit card companies a chance to increase your interest rates. As per the Credit Card Accountability, Responsibility and Disclosure Act of 2009, the credit card companies aren’t supposed to hike interest rates within the first year of service, unless and until you make a payment that’s 60 days late.
- Don’t give up on high balance: There’s a tendency among consumers to feel hopeless and absolutely give up when they see that their card already has a high balance. Don’t make the same mistake. If you start thinking that since the balance is already high, then why not keep on using the your credit cards, then you’re on the wrong track altogether. Rather, pay more than the minimum amount whenever possible so that you can get the balance down as soon as possible.
Follow the ways and tips that have been discussed above and it shouldn’t be a problem for you to avoid credit card debt settlement as you won’t be accruing debt in the first place. Avoid minimal temptations like when you go out shopping and it won’t prove that difficult in the long run. Give it a shot for it’s truly worth it.
This article has been written by Barbara Delinsky. She’s associated with various reputed websites and is an expert on credit card debt settlement plus other debt related problems.