A credit card can be both a boon and a curse. Improper usage can lead to a debt trap. The tips to avoid credit card debt in this article explain the various dos and don’ts for credit card users. These will help avoid debt.

Do’s

As a part of tips to avoid credit card debt, the various do’s or things to do while using your credit card are listed here. These tips will help you use your card wisely to prevent debt.

• Use your card responsibly. This is the best way to avoid credit card debt. A credit card needs to be used only to purchase what you need. Just because you have credit, it doesn’t mean you have to use it. Responsible and wise usage of the credit card is the secret to avoid debt.
• Do pay off the balance on time. Preferably, pay the entire bill by the due date or try to pay more than the minimum amount to avoid paying huge interest amounts.
• Do make a budget of how much you want to spend each month using your credit card and try to stick with it.
• Maintain a record of all your spending, keep the charge slips with you. Cross verify every entry in the bill without fail.
• Do negotiate with the bank/agency while taking a credit card. You can negotiate to get a better interest rate if you have a good credit score and a steady income.
• Do shop around with different card issuers to get the best offer. Compare offers from different agencies. Evaluate the prices and services before deciding.
• Do apply for travel/fuel cards to earn points that you can redeem to clear your dues.

Don’ts

The following are the things you must definitely not do to avoid credit card debt.

• Don’t go over budget. Avoid the temptation of spending money on your card for impulse purchases.
• Don’t take advances or use your credit card to withdraw money from ATMs. The interest charges are too high.
• Don’t ever share your credit card details with anyone else to prevent misuse and end up in a mess.
• Don’t use your credit card for daily spending like at grocery stores. This is not a substitute for cash.
• Don’t close credit cards unless it is inevitable. Closing a credit card or any credit account can affect your credit score, so be careful.
• Don’t take your credit card everywhere, you may be tempted to spend it. Go out without your card, especially when you visit places like malls so you can avoid getting tempted to spend more.
• Don’t have a card balance due amount of more than 35% on your credit card.
• Don’t have too many credit cards, you will find them difficult to manage.
• Don’t forget to read the fine print before taking a credit card.

The tips to avoid credit card debt in this article explained the do’s and don’ts to prevent falling into a debt trap. You can keep these tips in mind while using your credit card.