Having a credit card makes life easier. But if you aren’t careful while using it, you are likely to accumulate too much debt, leading to financial trouble. Excess credit card debt increases your interest payment significantly, delays your financial goals, and damages your credit score. This, in turn, can affect your chances of getting loans. Fortunately, credit card debt can be avoided. Here are some useful tips that can help you stay away from falling into the pit that is credit card debt.

Buy only what you can afford

You probably love using credit cards because it’s fast, easy, and convenient. Having a credit card in your purse or wallet will make you want to purchase things you can’t really afford. So, before you swipe your credit card, ask yourself if you have sufficient cash in your bank account to make the purchase and pay the balance immediately. If the answer is no, you probably don’t need that thing, and you must not use your credit card. However, in case an unexpected expense comes up, and you have to charge your credit card, then come up with a plan to pay off the balance as soon as possible.

Make payments on time

A great way to avoid credit card debt is to make sure to pay your monthly balance on time. If it’s hard to keep track of your credit card payments, speak with your bank and set up automatic payments. This will ensure that the money from your checking account goes directly to your credit card before its due date. If you miss a payment, you will be charged a fee, and your next payment due will be much higher. And if you repeatedly make late payments, credit cards will likely raise your interest rates to 20-30%.

Pay off the full outstanding balance each month

The best way to avoid getting into credit card debt is to pay your credit card bill in full every month. If you start with zero balance each month, you are significantly reducing the risk of getting into debt. However, if you’re unable to make full payments, make sure to pay at least a large percentage of your balance. Making only minimum payments each month means you’re not using your credit card wisely. It’s advisable to stop charging your credit card until the entire balance is paid off.

Have an emergency fund

Even if you are very careful with your credit card and know exactly where and when to swipe it, there is still a slight chance that emergencies, such as expensive medical bills or auto repairs, can land you in debt. And this is where emergency funds can be useful. Having extra money stashed away will ensure that you keep out of debt during such unforeseen events. But if you do not have that, you will be left with no choice but to charge your credit card, causing a vicious cycle.