The Nightmare That Is Credit Card Debt
If you own a credit card, you are at risk of credit card debt. It’s extremely difficult to pay back and the interest just keeps on building. Use the following tips to avoid credit card nightmares.
Stash Away Money
When you have steady income coming in, stash away some emergency funds. On a rainy day, you can dip into your emergency funds and save yourself from swiping that horrible piece of plastic.
Don’t Spend Beyond Your Means
If you are buying things today and hoping to pay with future earnings, you are definitely living beyond your means. Spend as much as you can afford and avoid putting it on your card.
Make Payments on Time
Late payments mean you are paying interest. Either you missed the due date or you just don’t have money to pay off your credit card. If it’s the former, make sure you make timely payments to avoid interest next time. If it’s the latter, you need to sit down and look at your spending.
Avoid Cash Advances
Using credit cards for cash advance is the worst thing you can do. It’s definitely a clear sign that you are headed towards a large credit card debt. Get back on track by fixing your budget and start working on that emergency fund.
Don’t Lend Your Credit Card
Giving away your credit card to someone else means you have lost control on how it’s being used. They can easily max out your card and never pay you back. Even if they promise to pay you back, in the end you are the one responsible for the charges on the card. If the credit card company has decided not to give them a credit card, maybe you shouldn’t either. If you are struggling with credit card debt, contact Oswalt Law Group for a free consultation.