Things to do before you end up in a credit card debt

When you face a financial crisis such as jobloss, business failure or a medical emergency, your response to each of them has to be the same.

For those in a financial struggle, credit cards give a temporary sense of remorse but actually it is only choking you more than you know. Many of us believe that credit cards can definitely help us in medical and emergency situations, but it is not healthy to consider them as a general rule. Credit cards are one of the easiest ways for you to end up in debt without even realizing it. Some people also think that it is highly impossible to live without credit cards, but the fact is that you can and that there are millions of people living that way.

It is not easy, but it is possible. It just takes dedication and the willingness to make change and then stand by it. Some people, when faced with tough financial times, borrow more money in order to pay off the debts that they are currently in but end up paying more and more. Using credit as a substitute for income will turn a bad situation into a disaster, every time.

This is the reason why you should get rid of credit cards first to come out of a financial crisis. This must be done up-front before you start using them for your everyday expenses. When you do this, you might still have certain choices to make and face the financial struggle; but only for a short time. Eventually, after sticking to a plan, you will have a control on things and be able to weather the crisis.

Credit Cards can be irresistible

In case you feel that a credit card is necessary for you; make sure you understand the credit card agreement carefully and completely. Spend using credit cards only if you know that your repayment capacity allows you to do so. Many people spend more than their capacity but then regret for the mistake made once the debt has been mounted on them.

The next piece of suggestion is to always avoid withdrawing cash in advance using credit cards as this may lead to a habit which you cannot stop. The only way to manage your finance using credit cards is to make sure that you complete the payments on time.

There are some situations that need to be avoided such as lending your credit cards to others and keep vigil so that you should be able to recognize the signs of a credit card debt.

Finally considering all the above, when your financial situation improves; you’ll be able to face a brighter future without a mountain of credit card debt hanging over your head. Hopefully, you will also have learned valuable lessons about how to live within your means and prepare for any unexpected financial emergencies you may face down the road.

But before you get there, don’t forget one last piece of advice: Use credit cards wisely or else do not use them at all!