How to Avoid Credit Card Debts

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Paying credit card debt is what almost all the Americans are right now doing, but it seems that the payment cycle never seems to stop! The main reason being, we pay only the minimum payment each month. Though we do this, due to our financial stringency, but to get out of this debt loop, paying more the minimum is the key. One needs to live a prudent life to attain a life with no financial hurdles and obstacles. Easier said than done, but worth a thought, and great if implemented at least fifty percent!

Through this edition we brief you with few basic steps on how to lower credit card debt.
The four basic steps on how to reduce credit card debt or avoid it would be
1.  Start now
2.  Get yourself off from the credit card treadmill
3.  Act prudently while using credit card
4.  Start using your debit card.

Start now: Analyze your current situation and never be afraid to look to your bills. Facing things and working on stratifies to overcome them is the best solution to get out of debts. It has been seen several times that, a simple analysis of the current situation and allocation of your money on the required stuffs, can easily get you back on track. For those who are unable to get off from debts this easily, never get disheartened as there is no dearth of options.

Get yourself off from the credit card treadmill: Freeze your debt, and for this you would need to stop using the credit card as often as you usually do. It’s best to save cash and they go for a large purchase rather than getting things on your credit card. Ensure every purchase you make on the cards, you have the sufficient amount at the end of the month to pay it all off. Never carry forward the current month’s debts to the next.

Act prudently while using credit card: Keep an eye on the interest rates charged by the card companies. Also note the changes they make on the rates. Check whether due notification of the same has been made to you on a prior basis. Look for cards with the lowest interest rates and also ensure that the card you carry has a zero liability policy, as this provides added shield to consumers by eradicating the burden, in most situations, of consumer payment card fraud. Without the zero liability policy, under federal regulations, consumers may be held liable for up to $500 or more.

Start using your debit card: Choose the best option among the credit and debit card while paying. The former is a buy-now-pay-later tool whereas the latter is buy-now-pay-now tool. Adequate and proper usage of both these wisely is necessary as both these pay a prime role in your wealth management plan. If convenience is the reason you are using credit card, carry debit card instead. And if you are using the credit card due to lack of finance with you, avoid spending on things which your means does not permit. The old saying ‘cut your coat according to your cloth’ is very much relevant here!

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