Avoid Credit Card Debt

Many of us are guilty of an impulse buy here or there, or a little splurge once in a while. We’re not saying that you shouldn’t do it or even that you shouldn’t put that little something on your credit card. It happens. But maybe it should happen less often, or at least use cash instead of your plastic.

Need some help resisting temptation? Look no further. We have:

5 Ways to Avoid Credit Card Debt

1. Train yourself to stop using your credit card for every little impulse buy. Just say “no” to the whole thing. The more you use your card, the easier it gets to use it again (and again).
    
2. Have a big purchase that you’re trying to save for? Write that goal down on paper, in big letters, and wrap it around the card. Every time you go to use your card and see the words, like NEW TV, on it you may decide you don’t need that new pair of shoes as much as you thought you did.
    
3. Think it’s love at first sight when you’re shopping? Don’t buy anything the first time you see it and anything you didn’t plan on getting in the first place. Put the game, DVD or sweater back. If you still want it after a few days, and it’s worth a special trip to the store, then go back and get it.
    
4. Seal your credit card in an envelope, wrap it up in rubber bands or, better yet, leave it home for safe keeping. If it’s hard to use, you’ll use it less.
    
5. If you have to have a credit card, make it a credit union credit card. Interest rates from credit unions cards are on average 3-10% lower than those from banks. That could save you hundreds of dollars on interest every year!

Not sure what credit card debt can do to your credit score? Not even really sure what a credit score is? Check out our Know Your Score section.

Been there, done that and don’t know what to do next? Our Digging Out of Debt section can help.