Spending Habits

So you've just got your credit card. The first thing you need to be wary about is that a credit card is very easy to use - afterall you can shop in stores, via catalogs and online with your credit card. As it is so easy to buy things with it you can find that you actually spend more than you are able to afford. As well as this, many people find that spending with a credit card does not feel like you are spending money - there is no physical cash handed over. This can lead to serious debt problems.

Controlling Your Spending

As many of us already know, a credit card can very easily get out of control. To avoid mounting credit card debt there are a few measures that you can take to protect yourself and your dependents from the stress of credit card debt.

• Limit yourself to a strict budget.
• Always pay off your credit card on time.
• Keep track of your credit card balance - many accounts are available online.

By following these simple but tried and trusted methods you will be much less likely to fall into credit card debt.

What To Do If You Have Credit Card Debt

If you have allowed your spending to get out of control and have accrued a credit card debt, then there are some simple steps that you can take to get out of the problem. Many people operate with multiple credit cards, once they reach their credit limit on one credit card they apply for another and repeat the process. The best thing to do is to consolidate all of your credit card debt onto one card. Apply for a 0% interest balance transfer card and transfer all of your credit card debt onto the card. The balance will not be charged any interest for a period of time, meaning you can start into paying it back.

• Apply for a 0% interest balance transfer card.
• Consolidate all your credit card debt onto one card.
• Close all your other credit cards.
• Stop spending - don't add to your problem!
• Start paying back your debt.

What To Do If Your Credit Card Debt Damages Your Credit Score

If you have a large credit card debt and have perhaps missed a couple of minimum monthly repayments, you may find that your credit score is depleted. In this situation you must address the problem immediately in order to protect your financial status.

• Get a copy of your credit report and check it for errors.
• Apply for a Secured Credit Card that will report to the credit bureaus.
• Repay your debts.
• Negotiate with your lenders.