When digging yourself back out of debt, it is important to plan ahead for the future. After all, your hard work now will mean nothing if you keep the habits that led you into credit card debt in the first place.
There are several things you can do to prevent yourself from backsliding into credit card debt again. Many have to do with restructuring your habits and the way you view your credit card.
Change how you view your credit card
The Balance examines ways in which you can avoid credit card debt. First, try to treat your credit card like it’s a debit card. Many people will spend until they hit their credit limit regardless of whether they actually have that money or not. They consider it an act of borrowing money that is not theirs, with the intent of paying it back.
But if you do not have the money, you cannot pay the bill in full. And this is another thing you should always do. Pay your bills on time and always pay the full amount. If you only pay the minimum, you could find yourself stacking up interest and bigger bills faster than you can keep up with.
Keep the number you own low
Next, understand the terms of your credit card clearly. This also helps you avoid penalty fees. You should minimize the amount of credit cards you have, too. For many people, one is all you need. Do not try to get around the spending limit with multiple cards, or attempt to pay off credit debt with another credit card. This will only lead to compounded debt that is harder to pay off.