This page uses JavaScript. Your browser either does not support JavaScript or you have it turned off. To see this page properly please use a JavaScript enabled browser.
PhoneContact Us Email
Contact Us
Required

    • Use the form below to contact us directly for general questions or to provide feedback. Please do not include member numbers or account numbers. If your need is urgent, we invite you to contact us by phone at: 800-296-8871 or stop by any of our office locations.






    • Phone Number
      ( ) - ext
    Members Cooperative Credit Union Go to main content

    Online Banking

    ONLINE BANKING LOGIN

    How To Avoid Credit Card Debt

    12/26/2017

    7 SMART WAYS TO AVOID CREDIT CARD DEBT

    Anyone who has a credit card risks carrying debt. Don’t let credit cards risk your financial freedom, and stick to our 7 smart ways to avoid credit card debt. 

    How to avoid credit card debt

    1. Create a budget

    The best way to avoid credit card debt is by creating a monthly budget. Set your monthly spending limits, and avoid charges outside your budget limit, unless you really need it. 

    If you’re unsure how to create a budget, check out our 6 easy steps on how to make a budget

    2. Charge only what you can afford

    Don’t use a credit card to finance an unaffordable lifestyle. If you can’t pay-off your entire credit card balance each month, you are overspending. Therefore, avoid credit card debt by purchasing only what you can afford. A good rule of thumb, if you can’t afford to pay cash, you can’t afford to charge it.

    3. Pay on time

    Staying on track with your credit card payments is one of the best ways to avoid credit card debt. Missing a payment will not only damage your credit score, most creditors will attach late fees and penalties to the original balance making it more difficult to catch up.

    4. Pay balances in full

    If you want to avoid credit card debt, pay off your entire credit card balance each month. Paying your total balance in full each month, eliminates the risk of getting into credit card debt by accruing interest. Of course, this means you can only spend as much as you can afford to pay off each month.

    5. Limit your number of credit cards

    The more credit cards you have, the more you can charge. The more you charge, the greater risk you take to be stressed in debt. You may have great self-control, but it’s better not to tempt yourself with thousands of dollars in available credit. Therefore, cut down on the number of credit cards you have to avoid credit card debt.

    6. Read the fine print

    Credit card agreements contain important terms about interest rates, late fees, and default rates. Credit card companies make money off consumers that fail to pay on time, as well as from the interest that accrues over the revolving debt. Understanding the terms of your credit cards can help you avoid paying fees and high interest rates.

    7. Keep a record of purchases

    It is important to pay attention to your credit card bills in order to protect yourself against errors and fraud. Comparing your receipts with the statement will ensure you do not pay for unauthorized or mistaken charges. Contact your credit card company immediately if you suspect any fraudulent activity to limit your liability.

    Even with our 7 smart ways to avoid credit card debt, sometimes credit card debt is impossible to avoid. However, it’s not impossible to have a plan for paying debt down. If you find yourself stressed in debt whether it be credit card debt, student loan debt, etc. check out our 5 get-out-of-debt steps to financial freedom.

    “Some debts are fun when you are acquiring them, but none are fun when you set about retiring them.” -Ogden Nash

     



    « Return to "Blog"
    Go to main navigation
    Video chat button