The following solutions to credit card debt keeps your plastic usage normal and healthy and only for the convenience of not having to carry cash or write checks. However, with that convenience comes the responsibility and challenge to stay living debt free by only use it on items that are allowed for in your household budgeting planning. Your goal, of course, is to eliminate unsecured credit card debt and keep it away.
Here are 10 things you should never use your credit card on:
1. Indulgence shopping on an expensive something that you very well know you cannot afford. If you do not have the money is available to pay for when the statement comes, then pass it on by. It may be easy to charge it, but will be hard to pay for later… with the continued added interest.
2. Television or radio infomercials for what ever gadget.
3. Unless you are very disciplined, do not use a credit card for groceries. More times than not, you will throw in that extra unneeded item if you do not physically see the money leaving your hands. I require my financial coaching clients to use a cash envelope for groceries for at least the first month. Lots of money gets saved.
4. Another plastic card no-no is for meals or entertainment. Again, unless you are extremely disciplined, these charges will pile up and you will overspend before it is realized. Track and monitor these expenses very closely.
5. Avoid using a credit card if you are in debt, consolidating debts, or are involved in any kind of debt repair. I will be blunt here and remind you that your irresponsible credit card behavior got you to this point in the first place. Watch this funny video for help with credit cards and stop it! Real solutions to credit card debt.
6. Never use more than one credit card. Consolidate the accounts and close them. It simply takes a phone call and follow-up letter to get it all done. Stay firm and do not fall for their sales pitch to keep the card. Keep one and close the rest.
7. If you really are after the goal to eliminate unsecured credit card debt, do not use your one credit card for regular expenses. Use it for emergency spending only. Needing a new tire because one blew out on the highway is emergency spending, a new DVD or meal out is not.
8. Do not pay late charges or extortionist high interest rates. How do you accomplish this? By paying off the credit card when the statement comes in. Not paying it off should trigger a red flag that you do not have a household budgeting process that works.
9. One of the biggest solutions to credit card debt is to never use the cash advance feature. That convenience will cost you 30% or more in interest and fees. Would you accept a loan with those terms? There is no difference. A cash advance is a loan. It is even worse when using the payday loan and advanced tax return providers.
10. And to round this list to an even ten, do not use a credit card for expenses you have not already budgeted for. No budget? Red flag! When you have no cash in the checking or savings accounts to pay for what you are about to buy on credit, real financial freedom will remain elusive.
Do you have any solutions to credit card debt yourself? Give your idea below and help others eliminate unsecured credit card debt once and for all and begin really living debt free.
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