How to Avoid Credit Card Debt

So, you finally dug out of that bottomless pit of credit card debt through hard work, personal sacrifice, and perseverance. Now that it’s over, how can you avoid doing the exact same thing all over again? Here are a few ways to make sure that you don’t repeat past mistakes with credit cards.

* Live within your means

Actually, this is probably better described as living under your means. Make sure that you only spend what you need to spend to survive and save the rest. Forget about trying to look like you have a million dollars. It’s a lot better to have a million dollars and not look like it, than to look like you have a million dollars and have nothing. Unfortunately, most of the people in today’s society choose the latter.

* Budget

In order to keep a strong hold on your finances at all times, you must keep a solid budget for all of your expenses. Most break this down into monthly budgets, but weekly or even daily budgets work as well. If you know where every last dollar of your money is going, it is much easier to avoid putting it in the wrong places. Make sure to save every penny possible to avoid needing to use a credit card in a moment of desperation.

* Always pay cash

This doesn’t mean that you need to carry a wad of cash around with you at all times. Just get a debit card from your bank account and keep a very close eye on what you use it for. If you can’t afford something, you probably don’t need it. If you really want it, then save up cash and pay for it. Don’t ever finance anything that you can pay cash for. That will only lead to your financial slavery all over again.

* Surround yourself with like-minded people

It will be extremely difficult to stay away from credit card debt if you hang out with a bunch of people that use credit cards at every turn. Make sure that you find some people that feel the same way you do about finances and credit card debt and hang out with them. You might even pick up some new techniques for saving or living frugally.

If you really want to keep yourself out of credit card debt and live a financially responsible life, following the techniques above can help you do just that. Set a goal for saving and, who knows, you might even be able to rid yourself of car payments and mortgages too. There is no better financial feeling than knowing that you don’t anything to anybody. If you really want it bad enough, you can get there.