7 Tips to Keep Your Credit Card Debt Low and Become a Responsible Card User

Written by Debtfree on March 8, 2018

With multiple credit cards in your wallet, staying out of debt is almost impossible. It gives you the ability to purchase things you like on credit and that’s tempting for sure! And unfortunately that temptation is what gets you into trouble as you continue to swipe your cards on just about everything you like but don’t need and when it comes to paying off credit card bills; this is when you regret your past buying decisions. The good news is that you are not the only one. Almost every third credit card user goes through the same problem but the bad news is that if you don’t do something about it now, you’ll be in deep water sooner than you can imagine.

The problem that needs to be resolved is overspending and delay in credit card payments. These are the reasons why credit card users end up filing for consolidation and settlements. If you learn to manage your expenses and pay off your debt timely, you can pull yourself out of the mess easily.

Tips to Become a Responsible Credit Card User

In today’s post, we’ll be focusing on some great tips on becoming a responsible credit card user and how you can keep your credit card debt low.

1. Curtail Your Expenses

First things first, to lower your credit card debt, you need to cut down on your unnecessary expenses. Stop impulsive buying and shopping for items that you don’t need. Just take a look around your home, how much items do you see that you have shopped with your credit card and never used? If you see many of such items; then you’ll know how much this tip will help you lower your card debt!

2. Sign Up for Automatic Payment System

To become a responsible card user, sign up for automatic payment system. Practically every card provider offers it. This system helps you pay your debts each month and that too; on time, helping you avoid hefty fees.

By enrolling in an automatic payment system, the system automatically withdraws payment due from your bank account. So, you don’t have to worry about keeping track of payment due dates on all your cards. However, please make sure that you have enough money in your bank account to ensure you are not overdrawn when the system makes the withdrawal.

3. Keep Track of Your Spending-Sign Up for Email Reminders or SMS

Some cards offer reminders and SMS if you are getting close to your spending limit. Sign up for this service to make sure you know you don’t overspend and cross your limit. This is a great way to combat impulsive buying habit and track your credit card purchases.

4. Pay Your Debt in Full

If you enroll for the auto payment system, make sure you opt to pay your balance in full. By doing so, you’ll be able to pay your dues in full and avoid interest and fees. If you can’t pay in full, then try to pay what you can afford. You can also call your credit card provider to negotiate a low interest rate.

5. Use a Reward Card

For those who prefer plastic money over cash, opt for a rewards card that matches your spending habit instead of settling for 1 percent cash back on everything. If you don’t do this, you’ll be giving up on hundreds of dollars worth of rewards every year.

6. Choose Your Payment Dates

Consider selecting your card payment dates on your own. Such as setting up payment dates a few days after payday is a wise move. This gives you time to ensure that the paycheck is properly deposited and cleared but payments are made timely before it is spent on other items.

7. Prefer Spending Cash instead of Using Credit Cards but don’t cancel them

With multiple credit cards, it’s easy to get tempted but this is where you need to control. Avoid carrying credit cards in your wallet. Try to make payments with cash whenever possible. In this way, you’ll be able to lower your expenses and keep your debt payment on your cards pretty low. However, this doesn’t mean you cancel your credit cards. Canceling credit cards can actually lower your credit rating which can impact your creditworthiness and overall credit score negatively. However, if it has a high interest rate or fee, then you might want to cancel it, as paying the fee may cost more than it will affect your score.

Follow these tips to become a responsible credit card user. By developing your habit of spending within your budget and curtailing your expenses, you’ll be able to keep your debts low and pay bills smoothly and on time. This is best way to avoid being burdened with debt and finding yourself in a position where you have to seek a debt relief program.

Remember credit cards should be used responsibly. Overspending with credit cards will only get you in trouble and damage your credit rating which is definitely something you don’t want! Prefer buying things with cash as in this way, you’ll be able to know where your money is going and how much you have spent and how much needs to be saved in order to ensure you have enough money for the month until you get your next pay check. Good Luck!

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