How to avoid credit card debt

Managing money can be tough but follow these tips to help you keep on top of your finances and avoid debt…

Monitor your spendings

Keep hold of receipts and make a note of your weekly and monthly spendings. Divide this up into categories such as food, clothing, entertainment, etc. so you can highlight what you are spending the most on. If you are spending too much on one thing then you can start to limit this with a bit of care. Once you know where your money is going it is easier to set yourself budgets.

Keep a calendar

Have a record of the dates when important bills or payments need to be made so that you can work around this with your bank statements. Payments will most likely be spread out so you are not paying excessively large amounts of money in one go. If necessary avoid signing any contracts which may require payments that overlap with other important bills.

Pay with cash

Where possible always keep cash to hand and avoid paying with card. This way you know that you have the money to spend and you can limit yourself to only being able to spend a certain amount. Just keep hold of those receipts and make a note of what you have spent!

Compare prices

Supermarkets are always comparing their competitors’ prices and you should too. Food shopping is just one thing you don’t need to do in the same place. Online shopping can get you cheaper deals for many things such as books and electronic equipment. Don’t rush into buying when you are shopping and avoid  making impulse purchases. With a bit of research you could save a lot of money.

Avoid borrowing money

Try not to get into a situation where you need to borrow money from a lender. If there is no way to avoid this, do some research to find the lender that can offer the lowest interest rate for what you need.

Limit your cards

Sticking to just one or two credit cards can help make your finances more manageable and prevent the urge to use a different card if one fails in the transaction.