Most people in the US have piled up a mountain of debt on their multiple credit cards. Though the consumers pile up debt with good intentions, often too many well-intended moves can lead to financial danger. Credit cards may seem to be attractive on the face but if they’re misused, you can stay sure that you will land up in serious financial trouble. Nothing can be worse than amassing credit card debt and trashing your credit score. There are certain ways that you can follow that will help you keep a track of your multiple credit cards. As credit cards give you the possibility of buying anything without paying for it, you get tempted to use them anytime. Read on to know about the ways in which you can avoid falling in credit card debt.
1. Not paying off your entire balance every month: If you have the habit of paying a portion of your credit card balance every month, you must immediately change this habit as this may lead you into serious financial trouble. Paying down the entire balance every month will help you avoid paying high interest rates on the accumulated balance. Nothing can be better than saving money on the interest rates as the rates on credit cards are outrageously high.
2. Making late payments on your cards: Making late payments is another blunder that can get you into serious amounts of credit card debt. Most credit card companies charge penalty fees and late fees with every late payment. The late payments unnecessarily add on to your monthly payments and increase them. You may later find difficulty making monthly payments on time if you pay your obligations late. Thus, always keep track of your due dates and make timely payments to avoid falling in debt.
3. Owning plenty of credit cards: The fewer number of credit cards you carry, the better will be the chances of falling in debt. If you have 4-5 cards, you will go shopping with every card and it is most likely that you will incur debt on each of your cards. This will push you deeper into the debt hole. Thus, try not to use all your cards at the same time and if you use, make sure you make the minimum monthly payments on each of them.
4. Sticking to a card with high interest rates: Though it is a fact that all credit cards carry high rates, the rates vary with different credit card companies. You must shop around and settle with the best credit card that offers you a rate that is affordable and is in accordance with your budget. You can simplify your monthly payments if you choose a card with a low rate.
Don’t keep your mailbox unattended. Check the mail that the credit card companies send you so that you can keep track of your multiple due dates and make timely payments on each of your cards. Credit card debt can have a dangerous effect on your credit score and make you unworthy of getting further lines of credit in future. Follow the steps mentioned above and stay away from unsecured debt.
Contributed By: DebtCC Community