by Amber Hilton

Created on: January 11, 2010

When used properly, credit cards can be valuable tools for establishing credit, making emergency purchases and earning rewards. However, when used irresponsibly, credit cards are one of quickest means of accumulating major credit card debt and creating poor spending habits that can last a lifetime. Although eliminating credit card debt is possible with hard work and self-discipline, it is much easier to simply stay away from credit card debt in the first place. The following are several tips to help consumers avoid credit card debt while still building valuable credit history.

* Don’t charge more than you can afford. Credit card debt often stems from the mentality that you can charge today and pay tomorrow. However, “tomorrow” often ends up being several months or years down the road. In the meantime, you have most likely accumulated hundreds or even thousands of dollars in interest charges. In order to stay away from credit card debt, only charge what you can afford to pay off within the same month to avoid finance charges. If you must carry a balance for a few months, aim to do so on a low interest rate card and don’t let this become a regular habit.

* Limit yourself to one or two credit cards. If you have a decent credit score, getting a credit card isn’t very difficult, but limiting yourself to just a few good cards is a smart idea if you’re worried about credit card debt. If your paycheck can cover a higher line of credit, try requesting a credit increase before applying for additional cards. The more cards you have, the harder it is to keep track of your spending and payments and the more likely that credit card debt will sneak up on you.

* Don’t fall for low introductory offers. Many credit card companies offer 0% or low introductory offers on purchases and balance transfers. While they can occasionally be a smart idea, such offers generally only cause problems. For one, these types of offers cement the poor habit of charging now to pay later, which is a recipe for disaster. Also, attractive introductory offers are often designed to hide high annual fees and exorbitant regular interest rates. If you do take advantage of a low introductory offer, be sure that you can pay off the balance within the introductory period and carefully read the fine print for hidden fees.

These are just a few of the steps that you can take to stay away from credit card debt. Remember that credit cards are not the enemy, but they can become dangerous when used irresponsibly. Create healthy spending habits by using your credit cards properly and you can avoid credit card debt while building your credit history and enjoying financial freedom.

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