A credit card is often associated with financial freedom. However, this might not always be the case. This is because, with such a card, the risk of a credit card debt is higher. Once the credit card debt starts building up, it can get very difficult to stop its accumulation or to repay it completely. Thankfully, there are certain tips to avoid credit card debt, which can let you enjoy financial freedom without any risks. Here’s discussing some of them.

Keep a fund for emergency
Hefty credit card debts are often a result of an unforeseen expense such as a medical emergency or an important car repair. These expenses are met with a credit card in cases where a person has not saved for an emergency. Do not treat credit cards as your savings. To avoid dependency on your credit card, you have to make sure that you keep aside some amount of your income as a part of an emergency fund to meet all your unprecedented expenses.

Do not stretch your limits of affordability
Surely, credit cards provide you a sense of financial freedom, but that does not mean you can stretch your financial limits. Most credit card owners make the error of buying things that they cannot afford. The common thought process while doing so is that they will manage the expense later. However, this is a big mistake. It looks fun at that moment to just swipe the card and get what you like. However, the real trouble starts when the bill arrives and you are not able to manage your expenses. This is when the debt starts piling up. Always remember that if you cannot pay it in cash, you cannot afford it.

Avoid balance transfers
Balance transfer from one card to another card is an option provided by most credit card companies. However, do not go for it until and unless you have a very good reason for it like a lower rate of interest. Most people do this to skip the due dates. Because of these transfers, the balance is transferred to one card along with an unnecessary balance transfer charge.

Ensure to make timely payments of your credit card bills
If you are serious about avoiding credit card debt, do not skip paying the bills. Keep a track of your due dates as this tip will help you avoid credit card debt. Do not miss any payments because if you do, the next payment will have last month’s balance, the current month’s bill, and some late payment fees. This is how credit card debts start snowballing. Once you let it become too big, it is difficult to manage the expenses and you get tempted towards using the credit card to manage your finances.

Pay the complete balance
One of the most important tips to avoid credit card debt is to pay off the complete balance each month. When you do so, you will be able to step into the next month without any balance on your credit card and hence, without any risk of debt.