(ThySistas.com) Having a credit card will always come with some degree of risk. When you have accumulated too much debt, it can take years for you to pay it off, not to mention that it can also be difficult for you to ever get on top of things again. If you want to stop things like this from happening, then there are a few things that you can do to try and help yourself.
Always have an Emergency Fund
A lot of people create credit card debt because their car breaks down or even because they are unable to make the repayments on their home. If you want to avoid getting into this situation then you have to make sure that you have an emergency fund. This will help you to avoid putting too much debt on your credit card and it will also help you to have a reliable source of cash should an emergency ever arise.
Charge what you can Afford
You need to avoid using your credit card to buy things that you cannot actually afford. If you
can’t afford to pay that amount in cash, then you can’t afford to charge it to your card. Credit cards should only be used to delay an expense, and the sooner you get into this mindset, the easier it will be for you to stay on top of your financial situation.
Avoid Balance Transfers
It’s so important that you don’t transfer balances from one card to another, just so that you can avoid your payment date. The only reason why you should be transferring a balance is so that you can take advantage of a lower interest rate. If you don’t then your balance will increase, and you may even have to pay a transfer fee too. This can add up, so make sure that you try and be smart when you make decisions like this.
Credit Card Payments
Staying on track with your card payments is one of the best ways for you to avoid credit card debt. When you miss a payment, the next one will be much higher because you will have to make two and then you’ll also have to cover the late fee too. If you just can’t catch up, then this will put a lot of strain on your budget and it may even cause you to take out another credit card just so that you can make ends meet.
Your Balance
If you want to avoid credit card debt, then it may be worth you looking into annuity settlements. It is also a good idea for you to pay off your credit card debt as much as possible. When you do this, you will never have to worry about getting behind and you also don’t need to worry about making the minimum payment either because all of your payments have already been made. This is a great way for you to make sure that your debt never becomes uncontrollable and you would be surprised at how much it could help you with your future finances too.
Staff Writer; Laura Moore