With the invention of credit cards, it may have become too easy for the average person to get into trouble by going into debt for thousands of dollars. In the past, people rarely spent more than they could afford, because they couldn't. Today, banks and credit card companies, on the other hand, make a lot of money off of your debt, so it's in their best interest to give credit cards to people with bad credit. Credit card debt is here to stay, and most people can't resist its allure.
It's not that having credit cards is bad or unethical in and of itself. We depend on them too much for basic, everyday things like buying gas, clothes, or food at a fast food restaurant. All of this adds up to more debt, and if it isn't kept in check, this way of life could lead to bankruptcy in the long run.
If you want to stay out of credit card debt, you may need to do some homework. You should learn a little bit about money, credit, and how to handle both. Making a budget is a must if you want to get out of debt and stay out of debt. Make a list of your fixed (i.e., always the same) monthly payments and your optional expenses. Then, you'll have to make some hard choices about things you want to buy or activities you want to do and how you can pay for them on your budget. You need to be honest with yourself, know what's possible, and be able to save money wherever you can. Set your mind ahead of time to stick to your plan. This will help you stay strong when you see tempting credit card purchases.
Gas cards, store credit cards, and lines of credit all try to get your attention and trap you in their high-interest payment cycles. Do you have to have them? If not, cut them up and cancel them.
When credit card bills are due, it can be tempting to just pay the minimum amount listed on the bill. The interest is the only part of the minimum payment. If all you do each month is pay the interest, you'll be in debt for what seems like the rest of your life. But if you try to pay more, you will get closer to being debt-free. So, if you can, try to save enough to be able to write a check for twice the minimum payment every month.
And if you have a lot of open credit accounts that are putting a strain on your finances, you could look into debt consolidation to combine all your debts into one payment that you can handle. This step will save you money and speed up the process of paying your bills every month.
