Avoiding Credit Card Debt

If you do not have credit, the best place to start is with a credit card. 

Buy something with it, 

earn rewards equal to a percentage of what you spent, 

and then pay your bill when it comes (ideally you'll be paying it in full so you don't get charged interest).

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​The basics

​Apply for the one that gives you the best deal
Look for :
- A low annual fee
- A low APR , or annual percentage rate
-Low to no annual fee's, late payments or going over your credit limit

A long grace period. This is the time between when you spend money and when the card charges you interest. Look for one that is at least 25 days long

• a special type of card that requires a cash deposit — usually equal to your credit limit — to be made when you open the account.

•  This money then acts as collateral every time you make a purchase.

​If you can not get a regular credit card, try to get a secured credit card

Apply only for cards that report your history to the 3 credit reporting companies.

Avoid credit card debt – 

• Buy what you can afford

•  Pay off any credit purchases each month to avoid fees and interest charges.

•  If charges carry over to next month, pay more than the minimum.

​Eliminate Credit Card debt

• Stop using credit cards

• Pay more than the minimum

• Do the math and lay out a plan

  Stick to the plan’s budget