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How to Avoid Credit Card Debt

It is not until the 60's that credit card has been available to common people. And starting from then, millions have fallen trapped on credit card debt. Unknown to many people, there are ways to avoid credit card debt.

Read and learn the five ways on how to avoid this problem.

Until the 1960’s, credit card has started to become available to average people and that was more than 70 years already. Throughout these long years, millions of people have been enslaved by their credit card and fallen in deep debt. Financial experts say that majority of the problem concerning credit card debt is caused by the mass availability of credit cards, strong influence of advertising and personal values. The pressing question then is how to avoid credit card debt happening to you. Here are five ways to avoid credit card debt:

The Use of Emergency Fund

One of the best ways to avoid credit card debt is applying preventive measures. And one of this is saving an emergency fund. It has been reported that many usually fall into credit card debt because they have no money to spend for emergency cases such as medical expenses. What they do is charge their expenses to their credit card. If they have an emergency fund they will not have to pull out their credit card once an emergency happens.

Know What You Can Afford

It is given that advertising nowadays is so strong that people think that they need something that they don’t, even if they cannot afford it. In order not to fall into the trap of charging anything into your credit card that is way over your ability to pay, is to know exactly the things you can afford. In the end you will also not be a slave of advertisement.

The Balancing Act

It is not uncommon that credit card users transfer balance to another credit card that they have. The key to this is having a good reason why you should transfer your balance to another card. Transfer of balance has fees and with varying interest rate, one can fall into credit card debt.

Pay in Full Each Month

If you can pay your credit card payment in full each month then it is the best way to avoid credit card debt. You will have not to worry about balances accumulating and this will help you pay without extra interest. Pay your balance in full each month with no interest with small business cards.

Cash Advances

Making cash advances is a wrong way to use your credit card. This only means that you have a bad financial management. In order for you to avoid credit card debt in the long run, fix your financial budget.

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