Avoid Credit Card Debt: Step-by-Step Guide

Did you know that the average U.S family carries over $5000 of credit debt?  That's a lot of money to be spending on interest payments. The good news is that there are many ways to avoid credit card debt.

Step 1: Make Sure You Have A Safety Net

To avoid going into credit card debt, you first need to make sure that you have a safety net in place. Have at least three months of living expenses saved up in case of an emergency.

Step 2: Create A Budget

The best way to avoid overspending is to create a budget and stick to it. Ensure that your budget includes room for both fixed and variable expenses, and try not to exceed your monthly allotment for discretionary spending.

Step 3: Use Cash Whenever Possible

When you use cash instead of a credit card, you're less likely to overspend because you can physically see how much money you have left. In addition, using cash also helps keep track of where your money is.

Step 4: Only Buy What You Can Afford

It's important to remember that you should only buy what you can afford. Just because you have a credit card doesn't mean that you have to use it for every purchase.

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