Credit cards have become a popular way to make payments. However, if not used properly, they can do more harm than good. Managing a credit card debt is way more important to consider than having a credit card itself. You can follow these tips to avoid credit card debt.

Build an emergency fund
The first tip to avoid credit card debt is to get into a habit of saving money. Experts suggest to start saving some amount gradually so that you can cover at least six months of expenses. If you have no savings, chances are you will depend on your credit card to make payments for larger bills, such as car repairs and medical expenses. It is indeed a healthy habit to start saving small from the very beginning.

Do not miss your payments
You should make it a point never to miss your credit card bill payments. There are two ways that can help you stay on-point with your payments. You can request your bank for automatic-payments. This way, the amount would automatically be debited from your bank account. In case you do not want an auto-debit facility, you can set reminders to make payments.

Be mindful of your credit use
There is no specific credit utilization ratio that can lead to a drop in a person’s credit score. Yet, it is still advisable to keep the ratio as low as possible. This means that you should utilize your credit-related facilities sparingly. Doing this can help you in two ways. Firstly, you will be mindful of your credit limit and how much you are spending. Secondly, this may have a positive effect on your credit score as well.

Be aware of your credit limit
It is important not to exhaust your credit limit. It isn’t that you should take advantage of your credit limit or let it sit idle. However, at the same time, you should use your credit limit judiciously. It is recommended by experts to use less than 30% of the credit limit, which your credit card offers. This way, you will be able to get the most out of your credit card without incurring a high monthly bill.

Stay mindful of your credit card balance
If there is a balance that is yet to be paid on your credit card, you must pay it at the earliest. This is because if you allow it to accumulate, it may compound, and you may find it hard to pay this amount later.

So, these were some of the simple and effective tips to avoid credit card debt. It is not bad to have a credit card, but it is also important to keep a clean record.