Having a credit card and spending according to their whims and fancies, has become a craze among the people of Western Countries, especially the people of US, UK and Australia even at the risk of becoming a heavy debtor. Even people who are struggling to have their both ends meet are using credit cards. For example in the year 2008, by virtue of possession of a credit card, a common US family is indebted to the tune of $ 10,000 and even a college going student is indebted to the tune of $ 2,000.Therefore, it is very common nowadays to have a credit card debt.

Therefore, people are racking up their brain, how to escape from the credit card debt and have a good credit rating. The following tips may be useful to avoid a credit card debt:-

1) Even though credit cards are convenient to use, you should have a control over them. Otherwise, credit cards will have a control over you. Therefore, as far as possible try to have either one or two credit cards, well below your credit rating, according to your repaying capacity.

2) You should remain patient and should not get discouraged till you are cleared out of your debts. When you are in the process of clearing your debts, your credit rate may improve and many credit card companies may even come to you with an offer of fresh credit cards. Don’t get in to such fresh debt traps.You should resist such temptations till you are entirely free from your debts.

3) You have to know about credit and budgeting. Knowing about financial management will help you to track your ways of spending and wasteful expenditure. It will also help you to save your money, by sticking to your budget, control your money flow and cash flow, besides preventing you from getting into fresh debts. While trying to get out of your credit card debt, you have to cut down on other expenses, like having a dinner in a fancy restaurant or things like book club membership etc. The idea is to cut down wasteful and luxury expenses when you are in the process of clearing your credit card debts.

4) Try to close all your credit cards to avoid penal interest etc., while you are in the process of repaying credit card debts. When you are unable to do that, close the one which charge a higher rate of interest. Switch over to a debit card which allows you to spend only the amount which you have in your bank account.

5) Consolidate all your credit card debts into a debt consolidation loan. The amount of repayment of consolidation loan on a monthly installment basis will actually be less than the amount you are required to repay on all your credit card debts.

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