Tips for Avoiding Credit Card Debt

The Best Debt Management Solution is to Avoid Debt

Dr. Joyce Brothers said, "Credit buying is much like being drunk. The buzz happens immediately, and it gives you a lift. The hangover comes the day after." Living in retirement with credit card debt is a sure way to feel hung-over.

Below are a few ideas to help you eliminate credit card debt in the future.

Tear Up ALL of Your Credit Cards…

The best way to avoid the temptation to buy something with a credit card is not to have the credit card in the first place. If you are serious about avoiding credit card debt then you should tear up your cards.

…Or Only Carry One Credit Card

If you are uncomfortable not having access to a credit card for emergencies. Then eliminate all of your credit accounts -- but one. Department store cards should definitely be eliminated.

Use a Debit -- Not Credit -- Card for Convenience

Many people complain that they need credit cards for convenience -- it is easier to shop, travel and get by without carrying cash. If this is your situation, carry a debit card that immediately withdraws money from your checking account instead of a credit card.

However, be aware that paying cash for items has a bigger psychological impact -- helping you to spend less.

Create a Budget and Track All of Your Spending

To avoid credit card debt, it is imperative that you understand your budget -- your expenses and income. Create a budget that balances your expenses and income and stick to your budget.

To help you with budgeting, you might try keeping a ledger in your wallet or purse. Write down and track everything you spend.

Lower the Spending Limit on Your Card

Call your credit card company and ask them to limit the amount that you can spend on the card.

Pay Your Credit Card Off in Full EVERY Month

If you pay off your card on time every month then you avoid all interest and financing charges.