Credit Card Debt Management Tips Pay more than Minimum Payment use your Credit Cards Spending

Credit cards offer convenience. They give you the chance to purchase things without paying full balance. This is particularly helpful when you cannot pay the full balance at once. However, in order to avoid overspending, learning some credit card debt management tips is necessary.

Credit card debt management tips

1. Use credit cards only for big purchases

If you carry credit cards with you all the time, it is only natural to regularly use them, even for trivial purchases. Over time, that can lead to huge debt that it would be impossible to get out of. To prevent this from happening, use credit cards only for big purchases,  where it  is really difficult to pay in full. When thinking of buying a new fridge, or  a new laptop for instance, it is wiser to use a credit card to pay the amount in monthly installments.

2. Pay more than minimum payment

When paying just the minimum payment, you essentially pay just for the interest, not for the balance. Therefore, it will take a long while before you will be able to pay off your credit card debt. To speed up the process and feel a huge weight lifted off your shoulders, it is financially wise to regularly pay more than minimum payment. If you do not succeed in paying more than minimum payment for one month, make sure you do it  next month.

3. Divide payments

Another thing you can do  to stay out of credit card debt is to divide payments.  Supposing you have to pay $100 for your credit card bill.  You can try paying $50 one week and more $50 next week, or ten days later (always before due date). That way you will manage to reduce interest rate and handle your finances better at the same time.

4. Opt for prepaid credit cards

With prepaid credit cards you have the chance to set your own spending limit. If you have trouble controlling your spending, it is best to pick a small spending limit. On the other hand, if you believe you can exercise some self-restraint, opt for a bigger spending limit.

5. Cash is safer

When paying in cash is an acceptable payment method, take advantage of it. By paying in cash, you are able to control your spending habits well, as opposed to using credit cards, where you only have to pay for minimum monthly payment. Get into the habit of using credit cards only when cash is not an option.

6.Use only credit card

If you realise that it gets more and more difficult to control your spending when using credit cards, try using only one credit card. If you use too many credit cards, it is likely to overcharge all of them.  If you pick just one credit card, at least you will be able to track your spending habits better. Pick a credit card with a big spending limit if you tend to make plenty of purchases, or a small spending limit if you use your credit card for certain purchases.

The above credit card debt management tips will help you use your credit cards more effectively. It is necessary to learn to use them, instead of letting them using you.