1.  Don’t use credit card for ordinary purchases.   Things like groceries, gasoline, clothes, and entertainment should not be acquired by using a credit card. Treating your credit card as a cash alternative or substitute can instantly leave you with a heavy debt.  For everyday purchases, consider using cash or your debit card instead.

2.  Don’t just settle the minimum payment each month. It only lengthens the period it will take you to settle your debt entirely. Further, the amount of interest that you have to pay also increases.  You should try to pay as much of your credit card bill as you can in order for you to settle your debts quicker and less costly.

3.  Don’t buy things you don’t have the money for by relying on your credit card. That is the easiest way to live in debt. The odds are, if you don’t have the money for your purchase today, you still won’t have the money tomorrow, or probably even next month.

4. Do identify your needs as opposed to just your wants whenever you are about to make a purchase.  Impulse buying on credit never amounts to a good thing.

5.  Do familiarize yourself with your credit limit and try to stay within 30% of it.  Credit scores consider the amount of debt you have.  Balances that are kept low help in garnering a good credit score.  Additionally, it is easier to manage lower balances.

It pays to be responsible with your spending, Bankruptcies and IVA’s are on the increase and finding yourself in a large amount of debt may also put you in this position.

More IVA Help and Advice -

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