Hold on to Your Credit Cards: How to Avoid Credit Card Debt

Credit cards have changed the way people look at money. It's slim, lightweight, convenient; and has your name in cool gold letters, too. It's already been ages since the last time you actually paid in cash. You don't think you have to, except that you're slowly falling behind in paying the credit card company back the past few months. "Prices just soared lately" and "That shop taxes big," you justify to yourself.

Deep down, you admit you're falling into credit card debt. You've been spending so much more than what you're actually earning and the interest is now eating you alive. You didn't notice it because you couldn't see the money being peeled away piece by piece. You need to avoid the expensive cycle and find ways to immediately resolve the predicament before it will put you deeper in debt and totally destroy your life and credibility. Here's how.

1. Budget. Analyze your income and expense and determine how much you can afford pay on your credit card bill per month. Consider your credit card bill just the same as your utility or rent bills and always assume to pay it in full.

2. Choose the right credit card. Consider the ones offering the lowest interest rates and only keep a maximum of two credit cards for emergency purposes. When it is time to pay the credit card bills, pay off the one with the higher interest rates first.

3. Be patient and humble. Do not buy on impulse or any luxurious item you don't really need then flash your credit cards just to impress your friends or your boss. In the end, it's only you who's paying for the price of your arrogance. If you cannot really afford something, just wait until the next opportunity comes. Credit cards must not be meant to buy you the things you want but cannot pay for at the moment.

4. As much as possible pay everything in cash or check. Do not use your credit card just because it's easy, convenient and fancy. Use it only when you have virtually no other means of paying.