Credit Card

Got a credit card? Know how to use it wisely? If not, it's good to learn because then you can avoid credit card debt.

How to Avoid Credit Card Debt

Here are some tips to avoid credit card debts:

• FREEZE! That's right, put your credit cards on ice. That way you are forced to wait for the ice to melt while you think about if you really want to make that purchase or not.
• Similarly, if you set a goal, such as a house, a car, a boat....find a picture of that item in a magazine or catalog and wrap your credit card in that picture as a reminder of that goal before you charge that new CD or those shoes.
• Be alert! Some credit card companies will send you an alert via email or phone to let you know when your balance goes above a certain amount that you designate.
• Shy away from those credit cards that will fit on your keychain. First of all, it's a security risk. What if you lose your keys? Second, it makes it a lot easier to use your credit card. If you have to look for it, you might be less tempted to spend.
• Play the Match Game....meaning, whatever amount you spend on your credit card, transfer that amount to a savings account. That way, you'll have the money at the end of the month to pay it all off. This will help you keep your spending in check. And eventually, you might just use the money in your checking account instead (unless you use your credit card to get rewards or something.)

Credit cards are a necessity in today's world, but some people treat them as their license to spend money they don't have. That's when you can get into trouble with your credit cards. And if you rack up a bunch of debt that you can't pay off, your credit might suffer. Don't let that happen to you. Use your credit card wisely.

All material copyright © 2008 Demystifying Debt. All rights reserved.

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