One of the biggest money problems in the United States today is credit card debt. Too many people use credit cards to pay for expensive lifestyles they can't really afford, which will lead to debt in the long run.
Credit card companies are well aware of this, so they market their cards to people who can't really afford to use them. They sell the idea that you can buy whatever you want, whenever you want, and then just sit back and collect interest on your debt for years.
The best way to avoid credit card debt is, of course, to never use a credit card. Many people find them too tempting, which makes it too easy for them to spend money they don't have.
As time goes on, they'll have to pay more and more in interest fees, and if they wait too long, they could end up in very bad financial shape.
In today's world, it's really not possible to never get a credit card. You need them if you ever want to order something by phone or online, and if you use them right, they can be helpful.
Here are three important ways to stay out of credit card debt:
- Don't always have your credit cards with you. If you can't just reach into your pocket or purse and pull out your card, it's much harder to spend money.
- If you really can't resist the urge to overspend, put the card in a Tupperware container or tin can, fill it with water, and put it in the freezer. If your card is frozen and you have to take it out to use it, it will be much harder to spend money on a whim.
- When applying for a credit card, compare them and look for the best terms, such as the lowest interest rate and the best payment terms.
If it's too late to avoid credit card debt, you can take steps to deal with it, such as getting credit counselling or a loan to pay off your debts.
