How To Avoid Credit Card Debt
- May 6, 2009
- 1,533 Views
Voice Over Artist
Darcie Champagne
Music
James Panepinto
Writer
Gretchen_Ivey
Living within your means can be done. You don’t want to be a slave to the credit card company, do you? Learn what to do to stay out of credit card debt.
You Will Need
- Budget
- Debit card
- Willpower
- Jar for change
- Savings account
- Odd jobs
Step 1: Calculate monthly expenses
Calculate your monthly expenses—right down to how much gum you buy—and compare that with the money you have coming in.
Step 2: Scale back
If your expenses exceed your income, see what you can live without. Keep slashing away until you have enough to live on, plus at least $50 a month you can put aside for unforeseen emergencies.
Don’t forget to factor in periodic expenses like birthday gifts, haircuts, and school supplies.
Step 3: Cancel your cards
Cancel all your credit cards except one. Tuck that away for emergencies.
Step 4: Set low limit
Ask the credit card company to set a low limit on your card.
Throw your change into a jar every night; when the jar is filled, put the money into a savings account.
Step 5: Use debit card or cash
Use a debit card or cash to pay for all purchases.
Step 6: Find extra work
If a large unexpected expense throws off your budget, consider taking on part-time work or odd jobs like babysitting until you’re caught up.
Step 7: Celebrate
Now celebrate your freedom from debt—but not so much that you end up back where you started!
The average American household has $9,000 in credit card debt.
Something wrong? Report this How-To
Video is in Money Matters (18 videos)
How To Pay Taxes As a Freelancer
- 1,666 views
- rsansivero
How To Buy Homeowners Insurance
- 1,706 views
- bracey
Comments (0)
There are no comments. Be the first!
Sign in or create an account to post a comment. Or, sign in using your Facebook to comment
and share your activity with your friends