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A sure-fire way to get into debt quickly is to start accumulating interest on some type of balance. Whether you’re dealing with a student loan, a mortgage, or a credit card, interest is the kiss of death for those trying to get out of debt and stay out of debt. It can be very difficult to pay off a debt when it keeps accumulating interest. You might feel helpless in this situation – constantly paying money toward the debt and barely seeing a dent being made in it. You can avoid paying interest on your credit card and help keep your credit score healthy by following these tips.

  1. Pay off your credit card balance every month, on time. You can avoid falling into the trap of paying interest by paying your full balance during every monthly billing cycle. If you can pay your balance during each billing cycle, you’ll avoid interest charges altogether. How can you be sure that you can pay off your credit card balance every month? Just make sure that you don’t charge more to your card than you can afford to pay. This will help you avoid interest and improve your credit score.
  2. If you’re already in debt, don’t skip payments. The same principle applies even if you already have credit card debt and you are subsequently paying interest. Focus on making all of your payments from here on out to avoid late fees and higher interest rates. In addition, paying each credit card bill, even if all that you can afford is the minimum payment, is a good practice to keep your credit score healthy.
  3. Keep your spending under 30% of your credit limit. If you’re trying to improve your credit score, you should not spend more than 30% of your credit limit in one billing period. To avoid spending too much, you can try to spread your purchases across a few different credit cards.
  4. Budget with a credit card. If you can use a credit card responsibly, you can use it as a budgeting tool. This is because every purchase that you make with your credit card will be recorded and you will be able to view your purchases on your billing statements. Taking a look at your expenses can help you determine areas where you can be saving money.
  5. Get the most out of your credit card. If you make a lot of your purchases with a credit card, you should make the most of your credit card by using a rewards card. There are many different types of rewards cards that you can take advantage of. If you’re making purchases anyway, you may as well get airline miles, retail points, or even cash back.

Credit cards can be a great resource, but they can also contribute to your debt if you are not careful. In order to build your credit score and make the most of your credit card, you should follow these tips. If you find yourself in credit card debt and you cannot make a dent in it, you need to consider your financial options. One such option is filing for bankruptcy. While this is not the right option for everyone, it might work with your situation. To learn more, you can contact me here.