How to Avoid Credit Card Debt

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Living within your means can be done. You don't want to be a slave to the credit card company, do you? Learn what to do to stay out of credit card debt.

To complete this How-To you will need:

Budget
Debit card
Willpower
Jar for change
Savings account
Odd jobs

Step 1: Calculate monthly expenses

Calculate your monthly expenses—right down to how much gum you buy—and compare that with the money you have coming in.

Step 2: Scale back

If your expenses exceed your income, see what you can live without. Keep slashing away until you have enough to live on, plus at least $50 a month you can put aside for unforeseen emergencies.

Tip: Don't forget to factor in periodic expenses like birthday gifts, haircuts, and school supplies.

Step 3: Cancel your cards

Cancel all your credit cards except one. Tuck that away for emergencies.

Step 4: Set low limit

Ask the credit card company to set a low limit on your card.

Tip: Throw your change into a jar every night; when the jar is filled, put the money into a savings account.

Step 5: Use debit card or cash

Use a debit card or cash to pay for all purchases.

Step 6: Find extra work

If a large unexpected expense throws off your budget, consider taking on part-time work or odd jobs like babysitting until you're caught up.

Step 7: Celebrate

Now celebrate your freedom from debt—but not so much that you end up back where you started!

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Tags:

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• business
• card
• company
• credit
• debit
• debt
• diy
• do
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• essential
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[J0rdan691]

My advice: 1.DONT GET A CREDIT CARD!

[debilchan]

I hate credit cards.

[fosterslover]

Nothing wrong with having a credit card as long as you're responsible

[ownerowner100]

i PAY MY CARD OFF EACH MONTH, AND I GET CASH BACK - AND THEY NEVER CHARGE ME A FEE

[nickitheninja5]

Ginger alert

[KevinWebb22]

This video could have been 10 seconds long. How to Avoid Credit Card Debt. ANSWER: Don't get a credit card.

[miesrah12]

if you have money (any form)

your in debt

because

MONEY=DEBT

with noe debt there is no money

watch the zeitgeist movies

[actorben]

Speaking as someone who's trying to dig and scratch their way out of debt, credit cards are one of the worst abominations to ever come across humankind since the A-bomb!

[alander86]

It sucks in the US because in order to do anything you have to have good credit. In order to do that you have to build a credit history. And the easiest way to do that is to get a credit card. That's why I'm looking at this vid trying to figure out how I can do this without getting into debt.

Word to the wise is to have a job and to to know that you'll have extra money to pay off any fees at the end of the month.

[ph0eix]

the main thing i hear about credit cards, are credit card deb

[GTRockero]

just use cash!

[Xaphirox]

I don't need this tip yet, but its better to plan for the future.