Jeffrey M. Rosenblum, P.C.
A Fresh Start

How to avoid credit card debt

Credit cards are both helpful and a menace at the same time. Some of the most financially responsible people can get themselves in trouble when it comes to credit cards. Because of this, we have compiled some tips for avoiding credit card debt in today's post.

A large portion of credit card debt occurs after someone has to have a repair done to their car or is faced with a medical expense. An excellent way to avoid credit card debt is by creating an emergency fund. Put aside so much money each month from your paycheck and designate it for emergencies only. This is not your savings either. This is only for emergencies. When an emergency arises, you can use this money to pay for it, such as a new roof on your house.

Never miss a credit card payment. Even if you pay your balance off each month, which you should be doing, do not miss the payment. A missed payment results in a higher one the next month as well as a late fee. This can spiral out of control quickly and lead to a ton of debt.

A lot of people get in trouble with credit cards when the lending institution increases their available balance. This does not mean you should charge everything in your path. You should still live within your means and only charge items you can afford to pay off in full when the bill arrives.

Do whatever possible to avoid cash advances on your credit card. If you need to use your credit card to get cash, you are likely already in trouble financially. If not, you would use your debit card to do so. Avoid cash advances at all costs. They can easily put you in a heap of debt with your lending institution.

If you have compiled too much credit card debt, speak with our firm about your options, including Chapter 13 bankruptcy, in New York.

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