New York residents just like you may have fallen into credit card debt before. It can unfortunately be easy to make mistakes that land you in financial hot water. However, getting out of debt isn’t enough. Once you’ve freed yourself from debt, you have to then create the habits necessary to keep you from falling back into it again.
FindLaw takes a look at the best ways to avoid credit card debt. One of the first tips is to avoid paying for disposable items on your credit card. This includes things like meals out, groceries, drinks, and other food sources. It’s easy for items like that to stack up without you realizing just how much you’re spending, since the item itself is long gone before you even get the bill. Solid physical purchases that last are easier to keep track of.
Cash advances should also be avoided. They’ll come with transaction fees and interest even if you pay them off on time, and if you don’t? There’s no grace period, so your interest can become extremely high in a short period of time. Special services offered with cards should be avoided for the same reason, as they tend to be overpriced.
Finally, make sure that you’re living within your means. Typically speaking, in order to have a healthy relationship with your credit card, you need to be charging only as much as you’re able to pay off by the end of that month’s billing cycle. If you’re charging more than that, you’re living beyond your means.
Credit card debt can be a slippery slope, so it’s easier to learn how to avoid it than to try digging yourself out. If you’re struggling to get back on track after dealing with credit card debt, you may want to consider consulting a financial advisor for extra help.