Cut the Charges, Not the Cards
Credit cards ? it?s a known fact that these deceptive pieces of plastic are most often the reason why people sink into black holes called debt. But you can?t deny the fact that they do prove useful once in a while, especially in emergencies or for online shopping. The trick to have your cake and eat it too ? use credit cards and stay out of debt ? is to use your cards with restraint and responsibility ? only when you really need to. It also helps if you choose one with a low interest rate.
The next step in staying out of debt is to remember to pay off the balance on your card, not just the minimum, but the entire amount. Remember, the interest rates can kill you financially if you put off paying the balance on your card. Paying just the minimum amount will only send your debt escalating because of the interest owed on the balance amount.
And if you forget to pay even the minimum amount, you are liable to pay penalty charges. If you?re absent-minded or tend to leave things till the last minute, set up an automatic credit card payment system with your bank so that they pay the base amount of the bill as soon as it arrives every month.