4 Rules To Owning A Credit Card And Not Letting Your Credit Card Debt Own You
If you are anything like me or the rest of the human population the prospect of having a piece of plastic that allows you to buy whatever you want and pay for it later is very appealing.
It is so appealing, in fact, that many people have lost everything by simply choosing to not see the “pay later” part of the deal. Eventually that “later” day comes to collect.
It is so easy to just swipe your credit card for everything and before you know it you have acquired quite the piece of debt. The 10’s turn into 20’s and the 20’s into 100’s and the hundreds into 1,000’s of dollars and in extreme cases the 1000’s turn into hundreds of 1,000’s of dollars.
So, on a brighter note I have constructed a plan to avoid this atrocity. Here are my 4 Rules to Owning a Credit Card and not letting your Credit Card Debt Own You.
1) Set a Monthly Limit
I know this sounds a bit elementary at first glance, however, you would be very shocked to know how many people just spend and spend and spend without having any clue as to how much money they are actually frivolously throwing away.
This rule suggests that you spend consciously. Know how much money you are spending every month. Set a limit on your Credit Card spending and stick to it. Do not, under ANY circumstances, compromise your limit! Once you compromise once it becomes easier to do it a second time…and then a third…and a fourth…etc.
This is a sure way to avoid accumulating mass credit card debt.
2) Do Not Spend More Thank You Can Afford to Pay in Cash
This rule is probably the most violated rule of them all, yet it is so simple.
The simply states the following:
If you cannot afford to buy your item in cash, then do NOT put it on a credit card!
3) Pay off Your Balance Every Month
Rule number 3 is self explanatory. Therefore I will not go into much detail here.
I will, however, say this: If you pay off your balance every month, you cannot accumulate credit card debt!
4) If You Get Into Trouble, Cut Up Your Card
If, for any reason, you fail to comply with the first 3 rules cut up your card until you pay off your debt.
We all know that occasionally an emergency will arise and it is at these times that a credit card is the most useful.
For example, if your car breaks down and you cannot afford the note on the repair you will obviously use your card to cover the tab.
This is why rule number 4 is here.
In the event that this occurs chop it up!
So there you have it! You cannot fail if you stick to these rules like glue!
Credit card debt is avoidable!
Can you follow the rules?
If you have already failed in this area and need information on how to manage your credit card debt you can visit Debt, visit http://www.debt-settlement-consolidation.com
Tags: credit card debt
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