The recent recession experienced by the US is partially due to large amounts of debt. Everybody in the country experienced the effects of wrong decisions made regarding personal finances. However, just because the country experienced consequences made by their wrong decisions, this does not mean that the people have learned the important lesson of financial stewardship. Do you want to wait for another lesson on this learn the hard way—the second time around? Most likely, not! So, take this time to focus on becoming financially stable and follow these tips on how to save yourself from credit card debt.
Make sure you have an emergency fund. Often times, people resort to their credit cards when crisis arise, such as vehicle or medical emergencies, because they do not have money saved up. If you keep an emergency fund each month, when emergencies arise, you would have enough saved up to cover unexpected bills. This way you will not find yourself buried in credit card debt.
With a credit card, it is easy to buy things you cannot really afford. Some people even say that the credit card was created for this purpose. Avoid this trap. Walk away from things you know are too expensive for you. If you do not have the money for it, you cannot afford it.
Do not ever miss any credit card payments. This will only balloon your debt. Be responsible and keep track of your payments. If you miss a payment, your interest rate will only eat up your budget.
Pay in full each month. This way you do not have an outstanding balance. If you always pay in full, you never have to worry about making the minimum payments. Always remember that if you cannot afford to pay your monthly bill fully, then you are spending too much.