Credit Card Debt

Credit card companies make their money when you fail to pay your bills and subsequently get buried by interest. It is for this reason that these companies try to make it as easy as possible for you to frivolously spend your money and wind up in debt.

Credit card debt is incredibly easy to incur because most of us mindlessly swipe our cards and forget about it. We go on shopping sprees and throw away receipts only to be shocked and traumatized each month when our credit card bills arrive on the doorsteps like an unwelcome relative.

Because it is so much easier to get into credit card debt than it is to get out of it precautionary measures should be taken to ensure you don’t end up owing your first-born child to Visa, Amex or MasterCard.

Budgeting is a key factor in avoiding credit card debt. You should always be prepared for, instead of shocked by, the arrival of your credit card bill. Because most companies issue bills at the same time each month you can learn to anticipate when it will arrive and have money put aside to pay the bill. It is a good idea contact your credit card company by phone or online throughout the month to keep track of how much you will owe when it is time to make a payment. You can also benefit from hanging on to each of your credit card receipts for a point of reference.

Overpayment is also a great way to keep yourself free of credit card debt. When you have extra cash pay more money toward your credit card than you owe. This will allow you to remain one step ahead of your spending and take a chunk out of the subsequent month’s payment.

If you can’t seem to avoid debt try calling your credit card company and negotiating a better interest rate. Often if you are able to convince your credit card company that you are unable to pay off interest at your current rate they can negotiate a better deal for you.

The most important thing to remember about credit card debt is that you can’t run from it. Even hiding on a remote island won’t dissuade a hungry creditor and their collections department.

Credit card debt can permanently tarnish your credit history and can prevent you from obtaining loans and mortgages in the future so before you go out and spend, keep in mind what you can afford.