Written by Admin on April 20th, 2009

5 Ways to Incur Minimum Debt on Your Credit Card

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By Herman White

Instead of finding yourself in a position where you are thinking on ways to get out of credit card debt or schemes to consolidate your credit debt, it is always advisable to try not getting there in the first place. There are a few simple rules which if followed stringently can help you remain out of debt or help incur minimum debt at least.

1. Always pay bills on time:

Never ever default on your credit card bill payments. Defaulting on a payment not only ensures that you get into a debt, but also incurs penalties for nonpayment as well as a bunch of other charges that your credit collector would be happy to explain. Most credit cards usually have a grace period within which if you pay make the payment, you would not invite interest on the amount you have drawn on the card. Ideally all dues should be cleared within this grace period. If done correctly it would ensure that you save money rather than go into debt.

2. Convert Huge Transactions on your card to EMI:

Always make sure that huge purchases or payments made on the credit card are converted to EMI that can be paid off every month on reduced interest. This helps to avoid incurring high interest on the debt.

3. Always make sure that the purchases are within your repaying power:

If you make a huge purchase on your credit card, say buy a motor bike, then make sure that even if you convert it to an EMI payment, the monthly EMI’s are within your grasp. If the EMI’s are higher than what you earn each month then it is a sure shot way to fall into a huge bad debt.

4. Make Payment towards the principal:

Always make sure that you pay something extra into your debt each month that is more than the minimum required payment. This way you ensure that the principal amount slowly wears away. This also results in progressively lower monthly payments as the interest amount decreases corresponding to the principal.

5. Shop Wisely:

Using your credit card responsibly is important if you want to stay out of debt. There is a huge tendency on the part of a credit card holder to purchase anything that he likes using the credit card. He would be blissfully unaware of the high interest he might eventually incur or the fact that it is not his money that he is spending. Using your credit cards when their use is absolutely recommended would ensure that you stay out of debt.

By following these simple rules one can ensure that one stays out of the cesspool of credit card debt and is not forced to go in for consolidation of debt. Doing a thorough research on the benefits of opting for a credit card also helps. There might be cards that offer competitive interest rates or added benefits for purchases or higher reward points etc.

One can compare consolidate credit cards and find ways to get out of credit card debt on creditcards.com and choose from among a variety of cards with different specialties such as low interest and balance transfer cards.

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