Tips On How To Avoid Credit Card Debt

Credit cards can be extremely useful for meeting financial emergencies, building credit, or purchasing important items before payday. However, if credit card debt is allowed to build and accrue too much, it could bring the cardholder to the brink of danger. It can be very hard to repay credit card debts if it builds too much. The following tips will help credit card holders avoid credit card debts. Titan Consulting Group can also be contacted in order to get expert advice in this regard.

Have an Emergency Fund

Financial emergencies can come in many forms including medical expenses, major car repair, and many more. However, one must be prepared to meet these types of financial emergencies that crop up in life. These financial emergencies can be handled very easily if an emergency fund is established. Set aside a savings account for specifically this purpose and put 6 months worth of expenses in it. This may take a while, but if there is a major accident or laid off, it will be worth it.

How Affordable is What You’re Trying To Buy

Before using credit cards, check if the item is affordable and meets the standards of your budget. This may seem obvious to some, but many people use credit cards to buy things that they would normally be unable to afford. If an item is simply not affordable, using a credit card does not change that fact.

Avoid Balance Transfers

A balance transfer is a good idea if it is done for reducing the interest rate. However, it can increase the card holder’s balance because they may need to pay balance transfer fees. It is important to check the math and make sure transferring balances is the most affordable way to go.

Avoid Default of Credit Card Debt Payment

If a credit card balance is not paid in full each month, interest compounds on that credit card. It is essential to avoid interest fees and late fees that make the debt situation worse. Cut back on expenses or sell things in order to avoid defaulting on your cards.

Beware of Debt Symptoms

Be aware of the early warning signs of credit card debts. Most people end up in debt crisis just because of neglecting debt symptoms. Some of the credit card debt symptoms are lack of emergency fund, overuse of credit cards, having past due bills, lack of proper plan to repay debt, ignoring credit card statements, having a tendency to skip credit card bills, using credit to meet basic needs, etc.

Strictly Avoid Cash Advances

Avoid cash advances at all costs in order to avoid credit card debts. Cash advances are dangerously convenient and allow the cardholder to take on more interest that they are going to have to pay off eventually making their situation even worse. Maintaining an emergency fund is an effective alternative to cash advances.

Avoid Lending Credit Cards to Friends or Family

Allowing someone else to use your credit card is simply asking for trouble. A third party then has the opportunity to incur a debt in your name that you, yourself may not be able to repay. There is also a chance that you may never be repaid and then are forced to come up with the funding on your own. It’s never, under any circumstances, a good idea to lend credit cards.

Avoid Owning More Credit Cards

Owning a large number of credit cards is not an indication of richness, but it is the clear sign of financial difficulties or irresponsibility. A person does not need many lines of credit. It is advisable to avoid the temptation of owning a large number of credit cards. It may feel like “free money” is being spent, but it’s not. Limiting the number of credit cards owned helps people keep debt to a minimum and resist the temptation to spend.

Follow Credit Card Terms Carefully

Most credit card owners avoid reading credit card agreements. These agreements are drawn up for a purpose and must be read carefully in order to get vital information such as how interests are applied to certain accounts, when will interest rates go up, and when the creditor will charge a fee. Being aware of these factors helps credit card holders stay out of debt.

Financial emergencies are severe situations and they require immediate action. If you are not able to handle emergencies on time, it may threaten your safety and basic needs. At the same time, it is advisable to take all possible measures to avoid the risk of increasing credit card debts. Those who are having trouble dealing with large amounts of credit card debt may want to seek the help of Titan Consulting Group, a company with expertise in providing debt relief options to those dealing with credit card debt.

About Titan Consulting Group

Titan Consulting Group helps consumers evaluate various debt relief options and choose the right program that best fits their short-term and long-term financial goals. We work with consumers seeking debt consolidation loans, or who may be considering options like debt negotiation or bankruptcy. Through our network of partners, we can help you find the right solution to reach your goals and get back to living a life free from high interest credit card debt.

Contact us today at (888) 488-4517 or Apply Online now.