It’s easy for credit-card debt to spiral out of control, especially since you’re only required to make a minimum payment every month. If this happens, you’ll soon find yourself searching for answers.
- Pay your balance in full every month: This is the best advice you can follow, as paying your balance in full means you’re never dealing with credit-card debt. To do this, you must know how much you can comfortably afford to pay every month.
- Don’t skip payments: There is never a good time to skip a credit card payment, as doing so will result in a late fee as well as a red mark on your credit report.
- Avoid maxing out your credit card: Just because you have a $10,000 credit limit doesn’t mean you have to spend $10,000. As a general rule of thumb, keep your balance at 30 percent or less of your total credit limit.
- Get something in return: If you qualify for a rewards credit card, you should take advantage. This allows you to earn points or cash back for every dollar you spend. It doesn’t necessarily save you from debt, but it does give you something to counteract your spending.
If you come to realize that your credit-card debt is out of control and there’s no way to get back on track, learn more about your options. In addition to contacting your credit card issuer, you may want to consider the benefits of filing for bankruptcy.