4 insider tips to steer clear of credit card debt
Credit cards certainly have their allure. Not only are they a great way to earn rewards, but they also come in handy when you need to finance a purchase or cover an important expense you don’t have cash for. There’s no denying that when managed properly credit cards are life saviors, but when you don’t have a proper handle on them, your finances may start to go south. This is why you need to know the best way and time to use your credit card.
So, to avoid credit card debt and risking a steep plunge in your finances, we’re here to share 4 insider tips to help you evade credit card debt!
Don’t go overboard
Overspending and going above your credit limits, believing you can pay it off next month, may cause serious damage if you haven’t thought things through. Not only would you be incurring debt but also raising serious financial risks such as damaging your credit history, accumulated interest payments, and delayed financial goals.
A simple rule of thumb is to always stick to what you can afford. It can be tempting to buy a brand-new laptop or a mini fridge to place next to your couch when watching TV, but let’s be real. Buying too many things on credit is a slippery slope, and the best way to avoid it is by managing your money and only using your credit card for items you can afford to pay for in cash and on the spot.
Keep your limit low
Many people might be tempted to get their hands on a high limit credit card; however, you don’t always need multiple credit cards or a bulk of money available at your fingertips. This may open up room to spending more money than you have at your disposal. In most cases, if you struggle with managing and controlling your finances, then it’s much more convenient to get a lower limit credit card. Why? Because your mind can be put at ease for multiple reasons. Installments are much easier to navigate and pay, and your credit history will be intact especially if you’re aiming to take out a loan!
Taking on a higher limit than you’re able to afford is more trouble than it’s worth. Besides, this is a great way to regulate your spending and keep you on track. And if you ever find yourself with more cash in your pocket and feel the need to boost your limit, one simple call to your bank will fix everything.
Pay your debt in full and on time
If you’ve ever wondered what might happen if you’re late in paying your credit card fees, then you need to know it’s not a pretty sight. Not only would you be left with hefty late fees and interest rates, you’ll be damaging your overall financial health — which can have a long-term effect.
To avoid that, stick to two major rules: don’t spend more than you can and pay back the amount on time and in full. By settling your credit card bill when it’s due and at full value, you’ll be able to plan out your finances and positively impact your financial health. This means that not only will you be living your life debt free, but you’ll also save yourself money in the form of interest while dodging unfavorable financial risks.
Use an Easy Payment Plan
An Easy Payment Plan enables you to use your credit card without worrying about accumulated interests or substantial payments. With this plan, our multiple partners offer you the opportunity to purchase products and pay in installments over a period of up to 36 months with 0% interest.
Let’s say you’re looking to buy a new couch or a TV that costs around 1,000 JOD, and you don’t fancy the thought of paying the full amount in one go. You can opt for an Easy Payment Plan and pay the amount bit by bit instead! If you go for a 12-months plan, you’d only be paying 83.3 JOD a month. This flexible credit card plan is easy, convenient, and manageable, making you less prone to incurring credit card debt.
Once you’re aware of how to manage and use your credit card effectively, you’ll be exposed to infinite possibilities and advantages! Keep those tips in mind whenever you plan on using your credit card, and you’ll be guaranteed to bask in the benefits of this card without worrying about debt.
