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Can changing credit card habits prevent debt?

On Behalf of | Sep 27, 2021 | Chapter 13

Credit cards pose one of the biggest sources of debt in America, alongside debts related to schooling or medical bills. Fortunately, credit card debt is one thing that you have control over.

In fact, simply changing your spending habits and the use of your credit card can almost entirely eliminate the chances you have of falling back into debt once you dig yourself out.

Changing your view on credit cards

The Balance looks at ways that you can avoid falling into credit card debt. One of the easiest ways to start is changing the way that you look at credit cards, along with how you use them. Typically speaking, people view credit cards as a way of borrowing money that they can then pay off at a later date. Instead, try viewing your credit card in the same way you view your debit card: as a way of spending money you already have. This allows you to repay all owed money at the end of your bill cycle.

Paying your bills on time has two primary benefits. One, you do not accumulate late fees or interest. Two, it helps you build your credit score, which can help you recover from any lingering damages from your time in debt before.

Avoiding accumulation of fees

When you cut out any accumulation of fees and interest, you keep your bills at a much more manageable size that you should have no trouble paying off on time. Speaking of, in addition to paying on time, you should always pay the full amount, too. This also builds credit scores while preventing additional interest, furthering your healthy credit card habits and keeping you out of debt.

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