Thursday, May 20, 2010

Summary: The average credit card debt in America is out of control. How can you avoid becoming a statistic?

These days, the average credit card debt is anything but average. Debt has steadily increased over the last fifty years (remember when you could actually save up to buy a house, instead of saving up for the down payment?). And while it's virtually impossible to live debt free in modern America, you can avoid the pitfalls that come with the average credit card debt.

Steps to Limiting Debt

1. Become an informed consumer.

The best way to avoid the average credit card debt is to know what you're talking about (not to mention what you're doing). The best way to do that is to find a reliable source of credit card information, such as Credit Card Whiz Kid, and make sure you keep up with the latest in credit card news.

2. Don't treat your credit card like a debit card.

We're very used to shopping with plastic these days. In many ways, we live in a cash-free society. That said, we don't experience the same qualms our parents might have when they pulled out their plastic. Subconsciously, it's very easy to confuse your debit card with your credit card and treat both like disposable income. But remember that every time you swipe a credit card, you're accumulating debt. They aren't the same at all.

3. Know your debt.

Part of the reason the average credit card debt is so high is that people develop ostrich syndrome: at the first sign of financial trouble, they bury their heads in the sand and refuse to face it. That's the worst thing you can possibly do. You should always know exactly how much debt you're carrying, and if there's a problem, deal with it immediately -- not once it's surged out of control.

4. Make regular payments.

No matter how out of control your debt may seem, always make your minimum payments -- more if you can afford it. If you make minimum payments, you will at least prevent your credit rating from plummeting, which will mean you can get consolidation loans and the like in the future if you need them.

5. Use credit wisely.

Before you make any purchase with a credit card, ask yourself if you really need it, if you can really afford it, and if it's really worth accumulating more debt.

The average credit card debt in America is out of control, but with careful spending and financial management, you can avoid becoming part of the problem.

For more tips on credit card debt, including saving money and avoiding getting taken, check out CreditCardWhizKid.com, a website that specializes in providing credit card tips, advice and resources. http://www.creditcardwhizkid.com/credit-card-debt/