Falling into credit card debt is often all too easy due to the way credit cards are designed to work. It takes active effort to avoid falling prey to them.
How exactly does one stay out of credit card debt, in that case? After filing for bankruptcy, it is more important than ever to have good spending habits.
Change how you view your cards
CNBC discusses ways to avoid credit card debt. Generally speaking, credit card debt occurs because of the way a person views their card. Many think of it as borrowing money, which leads to having a deficit in other accounts when it comes time to pay the credit card bill.
This leads to people paying the minimum, which causes additional fees to begin stacking up. Before a person knows it, they actually have massive amounts of debt and simply cannot pay off their credit card bill in full.
This cycle of self-generating debt traps many people. Filing for bankruptcy can help one break out of it, but if they do not know how to keep themselves from falling back in, then it is pointless.
A person should first change their understanding of how credit cards work. Rather than seeing it as borrowing money, one should view them as a debit card and not spend more than what they currently have on hand.
Paying the bill in full and on time
Of course, paying the bill in full and on time every time is crucial, too. This is the best way to avoid the debt that begins to pile up and build on itself. Keeping just these two tips in mind is often enough to save a person from falling back into credit card debt.