Effective tips for Avoiding Credit Card Debts

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » Effective tips for Avoiding Credit Card Debts

Effective tips for Avoiding Credit Card Debts

The content is accurate at the time of publication and is subject to change.

Credit cards are the best way to get introduced to the credit system and to learn to make the most in a credit driven economy. To handle credit cards well, one has to know what is beneficial about it and what can cause some trouble. Credit cards are great if you pay your bills on time and use it well without overusing your credit limit. They can work against you if you miss payments and buy more than you can pay off using them.

Using credit cards well, plays a particularly important role in managing bills without landing in debt. It is simple if you plan everything ahead. Note down all your necessities for the month before going shopping. That way you will know what you should spend on and how much will be left out for little indulgence.

If you are going shopping and you get reward points for spending through your credit card, then it makes sense to use it for big purchases that take up most of your bill. For example, grocery shopping can be done with your credit card and other small purchases like buying a donut or a coffee can be done by cash. You will not realize it but these small amounts can snowball into a large bill that will be difficult for you to pay during the end of billing cycle.

Paying credit card bills in complete will keep your credit scores healthy for a long time, and will make it easy for you to deal with financial emergencies. Compulsive shopping can lead to large unpaid debts, which not only destroys your credit score, but also makes it more difficult for you to manage monthly expenses. Credit card interest rates make it difficult to come out of any debt situation and so it is best avoided. Think twice when you plan to exceed your monthly budget. All of us like to indulge in a shopping spree once in a while, but even then, you must know what you can pay off in complete.

Reward points and cash back schemes can be used when you have a large monthly bill to pay off, due to some big purchase. Plan exactly when you want to redeem these points and then make the big purchase. Use your reward points frugally, but make sure that you use them before their validity expires. Collecting the reward points and using them when you have a bit of financial strain can help you come free without a debt.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Cards for Travel from Our Partners: Winter 2019 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Winter 2019 – Expert’s Choice

Posted: December 17, 2018

Nights are still drawing out, the wind is cold, and the air smells like snow already – the winter is close. Christmas and holiday season are approaching swiftly, and overwhelming gift ideas are swirling chaotically in your mind. Ready or… Continue reading

Credit Card Tips For Holiday Shopping 2018

Credit Card Tips For Holiday Shopping 2018

Posted: December 15, 2018

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household… Continue reading

Credit Cards to Save More on Holiday Shopping

Credit Cards to Save More on Holiday Shopping

Posted: November 25, 2018

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door… Continue reading

You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!