The Census Bureau estimates 183 million people in the country have credit cards. This is nearly 55% of the population across the country! While owning a credit card could bring with it a lot of advantage, it could prove highly disadvantageous if its bill is not repaid within the time stipulated and many have unfortunately been in this situation. The only way to get over the situation and avoid any kind of credit card debt would be to understand the nuances of it and act smarter. Here are some tips to help you with it.

Get down to the budget
Do not be tempted and allow that plasma TV or play station to charge your credit card. Remember, impulsive purchases are welcomed by most of the credit card companies as they are fully aware that this is a hasty decision and you cannot afford to repay it immediately. Draw your budgets every month. Many financial experts believe that one should have an overall quarterly budget and eventually draw their monthly budgets accordingly. The idea is never to spend over and above your spending capacity.

Debts should not exceed longer than 6 months
Think of your credit card as a snowball and imagine this snowball rolling downhill. It is only going to get bigger and heavier. This is the same situation for your credit card also. If you are buying anything on a deferred payment scheme using your credit card, ensure the loan period does not exceed six months. This is because the compounding effect of the simple interest beyond six months could prove to be very expensive in terms of a payoff.

Go for a low interest credit card
Understand the various options/schemes extended by the service providers. Do not hold on to your credit card any longer if the interest rates are too much.

Use the interest-free period to its best
Credit card companies offer attractive schemes and the famous among them would be the “interest-free period,” which usually lasts 3 or 6 months. One should be wise enough to repay back within the interest-free period, because firstly, the rate will return sooner than you think.

Reward points can backfire
Reward points are always an icing on top of the cake. But people tend to splurge because whatever what they want is not sufficiently provided by the reward points. What you have to do is calculate if it is even worth paying the additional interest on the item that you want to buy just because you have to use reward points. Instead, opt for essentials like using the reward points to fill gas or even paying up your essential bills. That way, there is no chance of splurging.

Overall, all it takes to avoid any kind of credit card debt is to take control of yourself, act responsibly, and manage your finances.