Avoiding Credit Card Debt

The easiest way to avoid credit card debt is not to apply for a credit card in the first place. However, oftentimes, it is the case that a credit card is a necessary item, for emergencies and/or perhaps your job requires you to pay your expenses up front, with reimbursement occurring after you've submitted your expense related receipts. Whatever the reason, credit cards are often the most expensive way or method of borrowing. They are relatively easy to get for anyone over the age of eighteen, and this is often where the problems begin.

If you do have a credit card, look on your statement to see what the credit limited is. If it's £2000 and you think that you only need £500, then call the company and ask them to reduce it. If you feel that you only need it for emergencies, then reduce it to a level that won't get you in trouble in the future. Credit card companies often reward loyal customers who make their payments on time by hiking up their credit limit. This is sometimes more of a curse than a blessing.

One piece of good advice is to put your credit card in a place in your purse or wallet where it is not particulary handy, that way you will not put your hand on it first. Next, keep it away from your computer; it's all too simple to use your credit online.

Always set up a direct debit with the credit card company, so that at least the minimum balance is taken each month. This means that although you will not really reduce your balance, you will not get into further debts through late payment charges. It will also help you maintain a good payment history.

If you have a zero balance on your card, ask yourself if you really need the card. If you think you don't, take a pair of scissors and cut the card into small strips and throw it away.