The best tips to avoid credit card debt are presented in this article. These tips can prevent you from falling into credit card debt. Following these tips will avoid getting into debt.

Utilization rate should be low
One of the effective tips to avoid credit card debt is to keep a low utilization rate on your credit cards. You may have more than one card. As a thumb rule, you must never utilize more than 50% of your total limit. Similarly, the total due on your cards at any time should be 35% of your limit. To prevent being in debt, following this tip is very helpful.

Never miss a payment
It is very important to pay your credit card bills on time. You must ideally spend within your limit and pay back the entire money spent on or before the due date. This ensures you get 30-45 days credit without paying interest. In case you are short of funds, don’t pay the minimum due but pay as much as you can to reduce your interest payment. The worst mistake is to miss a payment. You will be levied penalty and interest, and it adds up to increase your debt. Keep a reminder and pay your bill before the due date.

Understand the signs of debt
To avoid credit card debt, you need to understand what it means to be in debt. Remember that if you cannot pay your entire bill, you are in debt. If you only keep paying the minimum amount due, the interest keeps accumulating. When this cycle continues month on month, at the end of the year you will have a huge outstanding. This is a serious sign. To avoid this, ensure you try to clear your dues on time. If you are finding it difficult, then it is a sign to stop spending on the credit card.

Handle reward cards properly
Don’t sign up for a reward card blindly. The fees and charges may be more than the regular cards. Read the fine print before you sign up. If you drive extensively and spend on fuel, only then can you consider getting a fuel rewards card. Similarly, if you fly frequently, get a card that rewards you for using air miles. Go for a reward card only if it makes sense. Monitor the points you get and either redeem for fuel/air tickets or use the points to settle some of your dues. This is the best way of ensuring you don’t build your debt.

Avoid impulse buying
The biggest problem with credit cards is impulse buying. You see something you like and swipe your card even though you know you don’t have money. This is how you fall into debt. Avoid impulse buying to prevent being in debt. Try to have a budget and stick to it.

The tips to avoid credit card debt that are listed here are something every credit card user should know. These tips will be very helpful in avoiding falling into a debt trap.