This article focuses on credit card debt and how you ran into it. A lot of card holders are into serious credit card debt. Many do not even know how they got into the mess at all. Taking advantage of this article will help you to avoid using your credit card unnecessarily. This will also enable you to avoid debts that may consume you. Here is a list of what you have been doing wrongly:
Credit Card Debt : Making Balance Transfer To Avoid Credit Card Payment
You may have been consistently transferring balances to avoid credit card payment. This is very dangerous. A balance transfer is only ideal when you are getting a lower interest of consolidating credit card balances. Instead of making balance transfers to avoid credit card payment, why not find a means to make your payment?
To avoid going into debt, spend within your limit. You know that you will pay back everything you spend monthly, why not spend within your capacity. Overspending hurts your credit score. This in turn shows creditors that you are not credit worthy.
Skipping A Credit Card Bill To Pay Another.
To avoid credit card debt, put them in first place in your scale of preference. Each time you miss a payment, you are incurring further debt. For instance, you are supposed to pay $100 this month. If you skip it, you will pay it next month along with a late payment fee of about $37. That’s serious. If you also miss the subsequent payments, you will keep accumulating debt. This will definitely destroy your credit score and history.
Using Your Credit Card to Solve Basic Needs Or Buying Very Expensive Items
Moreover, using your card to solve everyday need is not ideal. Your income can cover such needs as buying food, gas, light bills and some others. Yes! You need a credit card but not for everyday use. Do not also use your credit card to buy very costly items. You may end up having a lot of debt. If you need very expensive items, use your income or salary to purchase it.
Not Minding Credit Card Statements
A lot of cardholders do not review their credit card statements to know where they need improvement. Some completely avoid opening it because they do not want to see the volume of their debt. Review your card statement thoroughly, discover your mistakes and work on them. If you have debt, make arrangement on how to pay it off. Follow the plan until the debt is cleared.
Lack of Plan to Pay off Debt
Some people see the debt they have accumulated and ignore it. The earlier you start making arrangement to pay it off, the better for you. It may take a while to pay off, but the earlier the better. Include debt payment in your budget. You can even get a debt payoff calculator.
No Emergency Fund
When you do not have an emergency fund, it becomes easier to use you credit card to solve the problem. In the end you find it hard to pay. To avoid this, set certain amount apart on monthly basis. This can take care of emergency.
In conclusion, spend within your means, make your payments in full monthly and pay them on time. Use your card responsibly, you will not run into debt.