6 Ways To Budget So Your Credit Card Debt Doesn't Send You Into A Panic

by Linda Anderson

If an enormous mountain of debt stares you in the face each month, it is time for you to take action and get it resolved once and for all.

To do so, here is a helping hand, providing you six major tips to tackling that debt.

Take a look at them, understand them and learn how they can help you. Read on and start saving now!

1. Use your credit card for what you need, not what you want.


When you have a credit card, use it for your needs and not for your wants.

There is a difference between the two when spending behavior through your plastic card is concerned.

Frivolous spending is not advised here, which is one of the possible reasons why you are sitting on said mountain of debt.

Use your cards for emergency wants and not frivolous needs. Make sure to pay back in full each month as often as possible.

2. Don't skip a payment, even if it seems like a good idea at the time.

Times are hard and tough on many, which is understandable.

So if you aren't able to pay in full each month, set up a payment plan to pay the minimum due, which would be a more affordable rate for you.

If you miss payments, you would call for a negative credit score and late fees — definitely not desirable!

3. Avoid paying interest


The first thing to do is to stop paying interest on your credit cards each month; as previously mentioned, pay off the balance in full when possible.

In doing so, you wouldn't have to pay interest. 

This way, you would be able to enjoy the benefits the card gives you and without having to to fill the bank's coffers.

4. Use mobile alerts when you can.

Nabi Tang

To save your card from identity thefts and frauds, your card should be linked to your mobile number.

This will ensure you know your credit limit and the bank would notify you when you would be reaching it, a way to ensure you don't overspend.

If there are unscrupulous activities on your card, the bank would inform you at once. And every transaction done with the card would come by as an insta-alert!

5. Treat your credit card as a budgeting tool.

Yes, this is true.

Only if you are confident the purchases you have made this month can be paid off in full, go ahead.

Treat your credit card as a tool telling you your spending limits per month, and don't go overboard with the spending.

To ensure overspending doesn't happen, don't charge more to the plastic than what you can pay back or have in your savings.

6. Rewards on the card can help you.


If you do choose to spend on your credit card, choose a rewards card that helps.

Cash back offers too are available with most cards, which can help you spend less on your purchases, too.

Check for cards that give such facilities are more miles to reward points as well!

On a final note, credit cards come in handy when an emergency happens. As a spender, one must be very wise to know what to do with his or her credit card, how to use it for the best — with all benefits involved — without overspending.

If you are in doubt about the rewards your credit card can bring to you, calling customer service would be the best bet; they would clear your doubts and inform you how to best use your rewards — likewise how to max the most benefits from your card, too.

Be wise!