Consumer Debt – Just Say No!

Whether you are a new high school graduate or approaching the glorious senior spring, you will likely have a P.O. box full of offers for credit cards. These cards are all competing for the same thing:to get you signed up and gain access to your money. Credit cards can be a useful addition to your arsenal.However things can get out of control and quickly snowball. Here are some tips to help you stay in control of your credit spending.


  1. Treat your credit card like a debit card. Having a credit limit that is higher than your bank account balance does not mean it is money you should spend freely. Try to stick to only spending what you can pay off at the end of each billing cycle. Using your credit card like a debit card will keep you out of the red.
  2. Keep a tab on everything. Tracking where you spend money and when you earn money is essential to avoid consumer debt. There are many different financial software tools that you can use to track things electronically such as Mint, Quicken, or HelloWallet. Most banks, credit unions, and credit cards will also have mobile apps that can help you track purchases on the go. This will allow you to see where you are financially and if you can afford those wants you may have.
  3. Don’t go into consumer debt. I can’t highlight this enough because going into consumer debt can severely damage your credit and create lasting harm. It is an admittedly appealing trap to use credit cards to live a lifestyle you can’t afford, but you are far better off avoiding the trap.
  4. Don’t completely avoid using credit cards. Building credit is an important part of your financial future. I’ll talk about how to build credit in further detail later in the book, but I don’t want to give the impression that avoiding credit cards altogether is the best option. Part of what determines your credit score is your demonstrated history of making payments on time and the general length of your credit history. Having a healthy relationship with credit is an integral part of having a responsible financial life.


To learn more about understanding credit cards and avoiding debt start by clicking over to Haven Money’s overview of credit cards.

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